US Commercial and Multifamily Mortgage Delinquency Rates Rise in Q1

On Tuesday, the Mortgage Bankers Association (MBA) released its latest Commercial Delinquency Report, showing commercial mortgage delinquencies were mixed across capital sources in Q1.

Based on unpaid principal balance, delinquency rates at the end of Q1 were as follows:

• Banks and thrifts (90+ days delinquent or in non-accrual): 1.24%, up 0.01 percentage points from 2025Q4.
• Life company portfolios (60+ days delinquent): 0.38%, up 0.06 percentage points from 2025Q4.
• Fannie Mae (60+ days delinquent): 0.78%, up 0.04 percentage points from 2025Q4.
• Freddie Mac (60+ days delinquent): 0.43%, down 0.01 percentage points from 2025Q4.
• CMBS (30+ days delinquent or in REO): 7.28%, up 0.70 percentage points from 2025Q4.

MBA’s quarterly analysis covers the five largest sources of commercial mortgage capital—commercial banks and thrifts, CMBS, life insurance companies, Fannie Mae, and Freddie Mac—which together hold more than 80% of outstanding commercial mortgage debt. Because each capital source uses different methods to track delinquency, rates are not directly comparable.

Commenting on the report, MBA Associate Vice President of Commercial Research Reggie Booker said:

“Commercial mortgage loan performance varied across capital sources during the first three months of the year. While overall loan performance remains relatively healthy, increases in CMBS and Fannie Mae delinquencies point to continued pressure from higher borrowing costs, refinancing challenges, and weaker conditions in some segments of the commercial real estate market. At the same time, delinquency rates for bank and Freddie Mac loans were stable or declined, reflecting the broader resilience of the market.”