Commercial and Multifamily Mortgage Delinquency Rates Increased in Fourth-Quarter 2024

WASHINGTON, D.C. (March 20, 2025) — Commercial mortgage delinquencies increased in the fourth quarter of 2024, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report.

“Commercial mortgage delinquency rates increased in the fourth quarter of 2024, with the exception of life company loans, which showed a slight decrease,” said Mike Fratantoni, MBA's SVP and Chief Economist. “Even with certain market challenges such as low occupancy rates and the uncertain impact of return-to-office mandates in the office market, and oversupply in the multifamily property market, delinquency rates remain relatively low from a historical perspective.”

Added Fratantoni, “MBA estimates that almost a trillion dollars’ worth of loans are maturing in 2025, and these maturities, coupled with more challenging economic conditions and rangebound interest rates, may result in some further increases in delinquencies if borrowers cannot successfully refinance these loans.”

MBA’s quarterly analysis looks at commercial delinquency rates for the top five capital sources: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. Together, these investors hold more than 80 percent of commercial mortgage debt outstanding. MBA’s analysis incorporates the measures used by each capital source to track the performance of their loans. Because each tracks delinquencies in its own way, delinquency rates are not directly comparable from one group to another. As an example, Fannie Mae reports loans receiving payment forbearance as delinquent, while Freddie Mac excludes those loans if the borrower is in compliance with the forbearance agreement.

Based on the unpaid principal balance (UPB) of loans, delinquency rates for each group at the end of the fourth quarter of 2024 were as follows:

Construction and development loans are generally not included in the numbers presented in this report but are included in many regulatory definitions of ‘commercial real estate’ despite the fact they are often backed by single-family residential development projects rather than by income-producing properties. The FDIC delinquency rates for bank and thrift held mortgages reported here do include loans backed by owner-occupied commercial properties. Differences between the delinquency measures are detailed in Appendix A.

To download current report, visit: https://www.mba.org/news-and-research/research-and-economics/commercial-multifamily-research/commercial-multifamily-mortgage-delinquency-rates.

In addition to this report, MBA works with its servicer members to develop the CREF Loan Performance Survey each quarter. For more information on the most recent results and the historical series, visit: https://www.mba.org/home/product/commercial-multifamily-loan-performance-survey-73258.