Early-stage delinquencies ticked up across most sectors
“The data show a gradual but persistent increase in delinquency rates in the overall market. In the most recent quarter, there were increases in short-term delinquency for all property types, except industrial, with some of the largest increases coming from multifamily, office, and health care properties,” said Judie Ricks, MBA’s associate vice president of commercial real estate research.
Ricks said government-sponsored enterprise, FHA and CMBS loans “also saw large jumps in early-stage delinquency.”
“This is a slight difference from last year – when long-term delinquency rates trended higher – and suggests that the strong market for refinances and modifications in 2025 was conducive to better positioning troubled loans.”
Behind the headline number, performance diverged sharply by capital source. About 5.21% of CMBS loan balances were 30 days or more delinquent, up from 4.97% the prior quarter, while delinquency rates for life insurers stayed low at 1.47%, down slightly from 1.50%.
GSE‑backed loans saw delinquencies rise to 0.97% from 0.63%, and FHA multifamily and health care loans climbed to 0.96% from 0.65%.