The delinquency rate for commercial mortgage backed securities has risen by the largest percentage since March 2012
The delinquency rate for commercial mortgage backed securities has risen by the largest percentage since March 2012.
A report from Trepp Inc. shows a 28 basis points increase in June to 5.75% which is up from 4.6% in June 2016. The rate has been rising over the past year as loans from 2006 and 2007 have reached maturity but have not been refinanced.
The rise in delinquencies is lower than many had predicted though and the jump is well below the level seen in 2010 when monthly increases of 40 basis points were common.
In June, Trepp says $2.4 billion of CMBS loans became delinquent while $400 million were cured. About $1.3 billion in CMBS loans that were previously delinquent were resolved with a loss or at par in June.
The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or nonperforming balloons) is now 5.65%, up 30 basis points for the month.
The multifamily sector spiked 110 basis points in the month to a delinquency rate of 3.92% and the apartment sector has been replaced by hotels as the best performing sector (lodging sector up 11 basis points to 3.53%).
Industrial (up 20 points to 7.57%) and offices (up 21 points to 7.46%) are the worst performers followed by retail (up 15 points to 6.65%).
A report from Trepp Inc. shows a 28 basis points increase in June to 5.75% which is up from 4.6% in June 2016. The rate has been rising over the past year as loans from 2006 and 2007 have reached maturity but have not been refinanced.
The rise in delinquencies is lower than many had predicted though and the jump is well below the level seen in 2010 when monthly increases of 40 basis points were common.
In June, Trepp says $2.4 billion of CMBS loans became delinquent while $400 million were cured. About $1.3 billion in CMBS loans that were previously delinquent were resolved with a loss or at par in June.
The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or nonperforming balloons) is now 5.65%, up 30 basis points for the month.
The multifamily sector spiked 110 basis points in the month to a delinquency rate of 3.92% and the apartment sector has been replaced by hotels as the best performing sector (lodging sector up 11 basis points to 3.53%).
Industrial (up 20 points to 7.57%) and offices (up 21 points to 7.46%) are the worst performers followed by retail (up 15 points to 6.65%).
