Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

8-Year Low for CMBS Delinquency

A big drop in late payments on securitized commercial real estate loans left the rate at a more than eight-year low. Hotel loans had the largest decrease.

October 2017 concluded with a 30-day rate of delinquency on loans that are included commercial mortgage-backed securities of 2.68 percent.

It turns out that October’s rate was the lowest delinquency rate for securitized CRE loans since May 2009, when
it was previously reported at 2.275 percent.

That was based on historical data from Morningstar Credit Ratings LLC, which reported the latest figures Thursday based on $809 billion in CMBS it rates.

CMBS delinquency was 2.94 percent in October and has moved lower each month since June, when it came in at 3.19 percent.
In October of last year, the rate was 3.03 percent.

“With steady new issuance volume pushing the outstanding balance of CMBS loans higher and special servicers actively resolving or liquidating assets, Morningstar Credit Ratings LLC believes the delinquency rate will hold below 3.0 percent after reaching an 18-month high of 3.19 percent in June,” the report stated.

The 30-day rate on securitized hotel loans was 3.01 percent, improving from September by 49 basis points — the best month-over-month improvement of any property type.

Industrial property CMBS loans saw a 40-basis-point decline to 4.89 percent in the latest report.

Retail property loans experienced a 25-basis-point drop to 6.12 percent as of October.

A 24-basis-point decline left October’s rate at 6.18 percent on securitized office building loans.

A 3-basis-point reduction from September put the rate on healthcare property CMBS loans at 2.05 percent
and the rate on multifamily loans at 0.42 percent.

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

Fannie Mae Profile

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC...