Delinquency Rate for US Mortgages Backed by Commercial Properties Increases in Q1

The Mortgage Bankers Association (MBA) reported that delinquency rates for mortgages backed by commercial properties increased in Q1, according to its latest commercial real estate finance (CREF) Loan Performance Survey.

Delinquency rates rose to 4.02% in Q1 from 3.86% in the previous quarter. The survey covers commercial and multifamily mortgage portfolios as of March 31 and includes $2.93 trillion in loans, representing 59% of the $5 trillion in outstanding commercial and multifamily mortgage debt as of 2025Q4.

Commenting on the report, MBA Vice President of Commercial Real Estate Research Judie Ricks said:

“Commercial mortgage delinquency rates increased to 4.02% in the first quarter of 2026 compared to 3.86% in the previous quarter. 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.”

“GSE, 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.”