Delinquency Rates For Commercial Properties Decreased In Q2 Of 2026
Delinquency rates for mortgages backed by commercial properties decreased during the second quarter of 2026. This is according to the Mortgage Bankers Association’s (MBA) latest commercial real estate finance (CREF) Loan Performance Survey.
“Commercial mortgage loan performance improved during the second quarter, with delinquency rates declining across most major property types and capital sources,” said Reggie Booker, MBA’s Associate Vice President of Commercial Real Estate Research. “While office and lodging properties continue to face challenges and CMBS delinquency rates remain elevated relative to other lenders, the overall decline in non-current loan balances points to continued stability in the commercial mortgage market.”
* The share of loans that were delinquent generally declined across the major property types, though performance remained mixed. Office and lodging continued to exhibit the highest delinquency rates.
* Among capital sources, CMBS loan delinquency rates saw the highest levels.
* 4.82% of CMBS loan balances were 30 or more days delinquent, down from 5.21%.
* Delinquency rates for other capital sources remained relatively low overall.
* 1.19% of life company loan balances were delinquent, down from 1.47%.
* 1.11% of GSE loan balances were delinquent, up from 0.97%.
* 1.06% of FHA loan balances were delinquent, up slightly from 0.96%.
MBA’s CREF Loan Performance survey collected information on commercial and multifamily mortgage portfolios as of June 30, 2026. This quarter’s results build on similar surveys conducted since April 2020. Participants reported on $2.95 trillion of loans in June 2026, representing 59 percent of the total $5 trillion in commercial and multifamily mortgage debt outstanding (MDO) as of the fourth quarter of 2025.
The Place for Lending Visionaries and Thought Leaders. We take you beyond the latest news and trends to help you grow your lending business.
