Two-month delinquency on loans included in commercial mortgage-backed securities grew last month. Driving the deterioration were securitized mortgages on industrial properties.
Delinquency of at least 60 days on securitized commercial real estate loans was 9.01 percent during July, Fitch Ratings reported.
Last month’s rate exceeded the record 8.81 percent rate set in May.
CRE lates were 8.64 percent in June.
“Fitch’s Ratings’ rated portfolio continued to shrink, down over $100 billion (20 percent) from its June 2008 peak,” the ratings agency stated. “This contraction accounts for roughly 180 basis points of the current delinquency rate.”
Fitch said that $1.4 billion in resolved delinquent accounts were more than offset by nearly $3 billion in loans that became 60 days past due during July.
Multifamily mortgages were the worst-performing, with a default rate of 15.92 percent. The rate rose from 15.69 percent in June.
Next were hotel loans, which saw delinquency climb to 14.22 percent from 13.85 percent.
At 10.45 percent, delinquency on mortgages secured by industrial properties was up 56 basis points — the biggest increase of any category.
The rate on retail CRE loans was 7.01 percent, worse than 6.84 percent in June.
Office delinquency was up 50 BPS to 6.64 percent.
