At a glance
- Office continued to post the highest delinquency rate among major property types.
- For a sponsor choosing a capital source, the CMBS delinquency rate was 3.7 times the life company rate and 5.5 times the FHA rate.
- As Private Wealth Daily previously reported, apartment owners face $757 billion of maturities while lenders favor other property types.
The CMBS loan delinquency rate rose 15 basis points to 4.97% in the third quarter, the highest level among the capital sources tracked in the Mortgage Bankers Association's CREF Loan Performance Survey, Connect CRE reported.
Office continued to post the highest delinquency rate among major property types. Life company loan delinquency rates rose 14 basis points to 1.33%, GSE loan delinquency rates rose five basis points to 1.16%, and FHA loan delinquency rates fell 16 basis points to 0.90%.
For a sponsor choosing a capital source, the CMBS delinquency rate was 3.7 times the life company rate and 5.5 times the FHA rate. CMBS also posted the largest increase among the four capital sources tracked in the survey, while insurance company, GSE and FHA loans remained low relative to historical norms, the MBA said.
“The large number of scheduled maturities coming due amidst the recent spike in interest rates will continue to be a headwind for commercial mortgage performance in the quarters ahead,” said Mike Fratantoni, MBA's SVP and chief economist.
As Private Wealth Daily previously reported, apartment owners face $757 billion of maturities while lenders favor other property types.
CMBS delinquencies run far above other capital sources
Loan delinquency rate by capital source, Q3 2026 (%)
- CMBS4.97%
- Life company1.33%
- GSE1.16%
- FHA0.9%
Show as table
| Item | Value (%) |
|---|---|
| CMBS | 4.97% |
| Life company | 1.33% |
| GSE | 1.16% |
| FHA | 0.9% |
Reported by the Real estate debt desk from Connect CRE and Mortgage Bankers Association CREF Loan Performance Survey. Published . Corrections