Commercial mortgage delinquency rates climbed to 4.02 percent in the first quarter of 2026, up from 3.86 percent in the fourth quarter of 2025, according to the Mortgage Bankers Association’s commercial real estate finance loan performance survey. Short-term delinquencies increased across most property types, with multifamily, office, and health care showing the largest jumps. Industrial was the only property type that avoided an increase in early-stage defaults. The survey covered $2.93 trillion in loans, representing 59 percent of the $5 trillion in total commercial and multifamily mortgage debt outstanding.
The shift toward early-stage delinquency marks a change from 2025, when long-term delinquencies drove the trend. MBA attributes the difference to a strong refinance and modification market in 2025 that helped troubled loans avoid deeper distress. CMBS loans showed the highest delinquency rates at 5.21 percent, up from 4.97 percent in the prior quarter. Government-sponsored enterprise loans saw delinquencies jump to 0.97 percent from 0.63 percent, while FHA multifamily and health care loans rose to 0.96 percent from 0.65 percent.
Office, lodging, retail, and multifamily properties drove most of the increase in non-current loans, while industrial and health care properties saw delinquencies decline. Life company portfolios remained relatively stable, with delinquency rates edging down to 1.47 percent from 1.50 percent. The gradual but persistent rise in overall delinquency rates suggests borrowers are struggling with near-term payments despite efforts to restructure debt last year.
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