NEW YORK–Delinquencies among pre-financial crisis mortgage loans surged in March, according to new data.
Trepp reported its CMBS Delinquency rate posted a rare increase in March, which marks the first uptick in five months and the second in the last 12 months. The March reading inched up one basis point to 2.88%.
“The rate is down 167 basis points year over year. Delinquencies started to abate after June 2017, when the reading was 5.75%,” the company said in its analysis. “Since then, the rate has fallen in 18 of the last 21 months, showing how rare an increase has become.”
According to Trepp, the all-time high of 10.34% was registered in July 2012. The post-crisis low of 2.87% was observed in February 2019.
The Overall Numbers
According to the Trepp data:
- The overall U.S. CMBS delinquency rate increased one basis point to 2.88% in March.
- The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or non- performing balloons) is now 2.79%, down five basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 3.01%, up one basis point from February.
- One year ago, the U.S. CMBS delinquency rate was 4.55%.
- Six months ago, the U.S. CMBS delinquency rate was 3.41%
- The CMBS 2.0+ delinquency rate inched up two basis points to 0.65% in March.
- The percentage of 2.0+ loans that are seriously delinquent is now 0.55%, which is down five basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 0.67%, up two basis points month over month.
- The CMBS 1.0 delinquency rate was 46.47% in March, an increase of 164 basis points.
- The percentage of 1.0 debt that is seriously delinquent surged 166 basis points higher to 46.42%. If defeased loans were taken out of the equation, the overall 30-day delinquency rate for CMBS 1.0 would be 51.32%, up 183 basis points from February.
- The industrial delinquency rate dropped 15 basis points to 2.02%.
- The lodging delinquency reading moved up 11 basis points to 1.60%. Lodging remains the best performing major property type.
- The multifamily delinquency rate declined 30 basis points to 2.01%.
For the full report, go here.