Mortgage delinquency rates for U.S. commercial properties rose in the fourth quarter of 2024 from the previous quarter. The Mortgage Bankers Association (MBA) published the latest figures as commercial loans worth almost $1 trillion are set to mature this year.
The state of commercial real estate is a key economic indicator. If the sector is under stress, it can trigger a chain of loan defaults, creating challenges for the financial system and posing a risk of broader economic decline.
The MBA looked at delinquency rates for the top five capital sources for commercial mortgages—life insurance companies, commercial and thrift banks, Fannie Mae, Freddie Mac, and commercial mortgage-backed securities. Combined, they account for over 80 percent of outstanding commercial mortgage debt. Excluding life insurance, delinquency rates rose for all the four remaining groups in Q4, 2024, the MBA said in a March 20 statement….