The national commercial mortgage delinquency rate declined 26 basis points to 2.68 percent in October for the fourth consecutive month, according to a new report from Morningstar Credit Ratings. The unpaid balance of commercial mortgages fell 4.5 percent, and securitized mortgages rose above $800 million for the first time since 2009.

The delinquency rate is down 35 basis points from a year ago, and down 33 basis points since the beginning of the year, according to Morningstar.

“With steady new issuance volume pushing the outstanding balance of CMBS loans higher and special servicers actively resolving or liquidating assets, Morningstar Credit Ratings LLC believes the delinquency rate will hold below 3 percent after reaching an 18-month high of 3.19 percent in June,” the report said.

Commercial Mortgage Delinquencies Continue To Decline

by Banker & Tradesman time to read: <1 min