Delinquency Rates for Commercial Properties Decreased in Q2

Delinquency rates for mortgages backed by commercial properties decreased during the second quarter of 2026. This is according to the Mortgage Bankers Association’s latest commercial real estate finance loan performance survey.

Commercial mortgage loan performance improved during the second quarter, with delinquency rates declining across most major property types and capital sources. While office and lodging properties continue to face challenges and CMBS delinquency rates remain elevated relative to other lenders, the overall decline in non-current loan balances points to continued stability in the commercial mortgage market.

The balance of commercial mortgages that are not current decreased in the second quarter of 2026.

• The share of loans that were delinquent generally declined across the major property types, though performance remained mixed. Office and lodging continued to exhibit the highest delinquency rates.

• Among capital sources, CMBS loan delinquency rates saw the highest levels.
  • 4.82 percent of CMBS loan balances were 30 or more days delinquent, down from 5.21 percent .
  • Delinquency rates for other capital sources remained relatively low overall.
    • 1.19 percent of life company loan balances were delinquent, down from 1.47 percent.
    • 1.11 percent of GSE loan balances were delinquent, up from 0.97 percent.
    • 1.06 percent of FHA loan balances were delinquent, up slightly from 0.96 percent.

For more information on MBA’s CREF Loan Performance Survey, please visit us here.

—Posted on August 24, 2026