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Commercial mortgage delinquencies were mixed in the third quarter of 2025, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report. While CMBS saw a 23-percentage-point increase in the delinquency rate to 6.59% and delinquencies rose slightly for both Fannie Mae and Freddie Mac, banks and life insurance companies experienced slight declines the rate of troubled commercial mortgage loans.
Fannie Mae commercial delinquencies ticked up 0.07 percentage points to 0.68%, while the increase for Freddie Mac loans was 0.04 percentage points, ending Q3 with a 0.51% delinquency rate. Life company delinquencies ticked down by 0.04 percentage points to 0.47%, while for banks the decrease was 0.02 points to 1.27%.
“Property values have stabilized, but loan performance is impacted by shifting property fundamentals, including higher vacancy rates and slower rent growth,” said Reggie Booker, MBA’s associate VP of commercial real estate research. “Delinquency performance remains highly dependent on property type and loan structure.”
MBA’s quarterly analysis looks at commercial delinquency rates for the top five capital sources, which combined hold more than 80% of commercial mortgage debt outstanding. Because each tracks delinquencies in its own way, delinquency rates are not directly comparable from one group to another.
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