WASHINGTON – Delinquency rates for mortgages backed by commercial properties decreased during the third quarter of 2025 compared to the prior quarter, the Mortgage Bankers Association reported.
"After significant increases in the second quarter, delinquency rates declined in the third quarter,” said Judie Ricks, MBA’s associate Vice president of commercial real estate research. “Compared to the first quarter, third-quarter delinquency rates were up, driven by increases in later stage delinquencies and foreclosure/REO properties. It is worth watching this portion of the market the rest of the year amidst broader economic uncertainty.”
The balance of commercial mortgages that are not current decreased in the third quarter of 2025.
The share of loans that were delinquent increased for some property types, particularly multifamily and health, and decreased for office, retail, industrial, and lodging properties.
Among capital sources, CMBS loan delinquency rates saw the highest levels.
- 5.66% of CMBS loan balances were 30 days or more delinquent, up from 5.14% at the end of last quarter
- Non-current rates for other capital sources remained moderate
- 1.45% of life company loan balances were delinquent, down from 1.40%
- 0.64% of GSE loan balances were delinquent, roughly unchanged from 0.61% the previous quarter
- 0.79% of FHA multifamily and health care loan balances were delinquent, down from 1.04% the prior quarter