The percentage of conduit commercial mortgages paying off at their balloon date in August is 72.1% (by remaining balance), down two percentage points from July, according to data gathered by Trepp.
Still, the August rate is the second highest in the period starting January 2009 (July being the highest).
August’s payoff rate is also well above the 12-month moving average of 63.3%.
If loan count is looked at rather than balance, the percentage is 72.2% of loans paying off at their balloon date, with a 12-month rolling average of 65.1%.
Trepp said the high percentage of loans being able to pay off their balance is not surprising given that most of the loans reaching maturity now started with 10-year terms and were originated to higher standards in 2003. In 2012, most of the loans reaching maturity were
Loans which prepaid or were defeased prior to maturity are not counted in these stats, only loans that reach their maturity date.
