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.

CMBS Loan Performance is Spectacular

The monthly performance of securitized commercial real estate loans continues to improve, with delinquency establishing yet another post-crisis low. Industrial properties led the latest drop.

Morningstar Credit Ratings LLC reported Friday that 30-day delinquency on loans pooled in commercial mortgage-backed securities was 1.94 percent in August.

Compared to one month previous — when the 30-day CMBS rate fell to the lowest level since 2008 — delinquency has tumbled by 11 basis points.

A 108-basis-point plunge was recorded versus the same month last year.

Morningstar’s statistics are based on data from $835 billion in CMBS.

On Monday, Trepp LLC reported that
the 30-day rate on securitized CRE loans plummeted another 23 BPS in September to 3.41 percent. The rate has plunged from 5.40 percent as of Sept. 30, 2017.

“September’s reading breaks the previous post-crisis low of 3.64 percent set last month,” Trepp’s report stated. “The all-time high of 10.34 percent was registered in July 2012.”

Leading last month’s improvement were securitized industrial property loans, with the 30-rate sinking 108 BPS from August to 2.98 percent. The resolution of a large, distressed portfolio loan was behind the improvement.

Delinquency on retail property CMBS loans was slashed 46 BPS to 5.01 percent as of Sept. 30. Still, the retail rate was the worst of any category.

Trepp said that the 30-day rate on securitized office building loans dropped 18 BPS to 3.94 percent.

A 12-basis-point drop was recorded for multifamily delinquency, which was 1.95 percent.

Only securitized loans on lodging deteriorated, with a 5-basis-point increase to 2.27 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