Delinquency rates for mortgages backed by commercial properties increased during the third quarter of 2026, according to the Mortgage Bankers Association’s (MBA) latest commercial real estate finance (CREF) Loan Performance Survey. The survey found that the trend in the share of loans that were delinquent was mixed across the major property types, with office continuing to exhibit the highest delinquency rates.
Among capital sources, CMBS loan delinquency rates saw the highest levels, with delinquencies up 15 basis points from Q2 to 4.97%. Delinquency rates for other capital sources remained relatively low compared their historical norms: life company loans came in at 1.33%, up 14 bps; delinquent GSE loan balances were up five bps to 1.16%; and FHA loan delinquencies were down 16 bps to 0.90%.
“Challenging fundamentals, particularly in the multifamily and office markets, along with higher rates, are having an impact on performance,” said Mike Fratantoni, MBA’s SVP and chief economist. “However, delinquency rates remain historically low across most capital sources. The large number of scheduled maturities coming due amidst the recent spike in interest rates will continue to be a headwind for commercial mortgage performance in the quarters ahead.”
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