CMBS Delinquencies Continue Post-Recession Drop: Fitch
Delinquencies for commercial mortgage-backed securities declined for the 15th consecutive month in June, according to data released Monday by Fitch Ratings.
CMBS delinquencies fell by 10 basis points to 4.87%, compared with the previous month.
June marks the first time since the recession that delinquencies on major property types have fallen below 6%, the company said in a press release. Past-due rates for industrial properties saw the largest drop, falling by 65 basis points to 5.78% from the previous month.
Multifamily delinquencies dropped by 27 basis points to 5.65%, while retail property delinquencies fell by 16 basis points to 4.82%.
Hotel delinquencies were up slightly month-over-month, increasing by 18 basis points to 4.82%.
The improvements in CMBS delinquency rates could reverse, the ratings agency cautioned, if applications for large servicing transfers and loan modifications are declined in the coming month.