Approximately 1.7% of business/multi-family properties were greater than 90 days late or in REO properties in the primary quarter, up from 1.6% within the fourth quarter. Mortgage loans 60 to 90 days late increased from 0.1% to 0.2% quarter on quarter, while loans 30 to 60 days late remained flat at 0.3%.
The questionnaire showed that loans secured by residential and industrial real estate proceed to experience the best stress. However, in each cases delinquency rates declined, with outstanding loans 30 days or more down by five basis points to five.6% and delinquent retail loans down eight basis points to 4.6%.
“Higher and volatile rates of interest, coupled with uncertainty about property values and a few property fundamentals, are dampening sales and mortgage lending volumes,” Woodwell said. “Some loans maturing under these conditions are more likely to face increased friction, which is more likely to drive delinquency rates further up in the approaching quarters.”
Other key findings of the CREF study include:
- 2.7% of the balance of office real estate loans was overdue, up from 1.6%.
- 0.9% of the economic property loan balance was late, compared with 0.3%.
- 0.7% of multi-family balances were delinquent, up from 0.5%.
- Due to the concentration of hotel and retail loans, CMBS’s loan delinquency rates are higher than other sources of capital. 3.3% of CMBS loan balances were 30 days or more in arrears, up from 3.2% within the last quarter.
- Long-term rates for other sources of capital were more moderate. 0.8% of FHA multi-family and healthcare loan balances were no less than 30 days late, no change from last quarter.
- 0.6% of corporate life loan balances were delinquent, up from 0.4%.
- 0.3% of GSE loan balances were delinquent, up from 0.2%.