Delinquency on securitized commercial mortgages has risen more than 500 percent during the past 12 months.
Late payments were 3.02 percent on commercial mortgage-backed securities conduit loans and fusion loans as of July 31, Moody’s Investors Service reported today. Delinquency soared from 2.67 percent in June.
On July 31, 2008, delinquency stood at just 0.48 percent. The low of 0.22 percent was reached in July 2007.
The increase was led by the hotel sector, which jumped 143 basis points from June to 4.69 percent.
“The hotel sector is quickly gaining ground on the worst performing sector so far during this downturn: multifamily,” the statement said.
Multifamily delinquency increased 43 BPS to 5.00 percent, while loans secured by retail properties and industrial properties were each up 28 BPS to 3.20 percent and 2.25 percent, respectively. Office-secured loans ended July at 1.80 percent, up a more moderate 20 BPS.
Delinquency rose the most — 42 BPS — in the South, where it ended last month at 4.32 percent. The 17 basis point increase in the Midwest was the lowest of any region, though the 4.12 percent rate was still the second-highest. The lowest delinquency was in the East: 1.74 percent.
“During July, Nevada passed Michigan to become the state with the highest rate of delinquencies,” Moody’s said.
Nevada was up 78 BPS to 7.71 percent, while Michigan ended July at 7.65 percent.
