Delinquency rates for commercial and multifamily loans declined in the first quarter, according to data released from the Mortgage Bankers Association.
"The last two quarters marked the largest percentage point declines in CMBS delinquency rates ever," said Jamie Woodwell, vice president for commercial real estate research.
The 60-day delinquency rate for loans held or insured by Freddie Mac fell 5 basis points to .04%, while the same measure for Fannie Mae remained unchanged from the previous quarter at 0.10%.
The share of 90-day delinquent loans held by FDIC-insured banks and thrifts was 1.57%, down by 0.13 points from the previous quarter. The 60-day delinquency rate for commercial and multifamily loans held in life company portfolios stayed at .05%
The industry association predicted that the drop in commercial and multifamily mortgage delinquencies will continue in future quarters. "With property incomes and values rising, loan performance should continue to benefit," Woodwell said.