May 3, 2019
The latest research by Trepp shows the CMBS delinquency rate resumed its decline in April after a rare, albeit tiny, uptick in March. The April reading also represents a new post-financial crisis low, notes Trepp. The overall U.S. CMBS delinquency rate decreased six basis points to 2.82% in April.
The Trepp reading was down 154 basis points year over year. Trepp points out the delinquency rate started to fall after the June 2017 report when CMBS delinquencies clocked in at 5.75%. Since then, the rate has fallen in 19 of the last 22 months. Year to date, the rate is down 29 basis points. The all-time high of 10.34% was reached in July 2012.
The percentage of loans that are seriously delinquent (more than 60 days delinquent, in foreclosure, REO, or non- performing balloons) is now 2.69%, down 10 basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 2.96%, down five basis points from March, notes Trepp.
One year ago, the U.S. CMBS delinquency rate was 4.36%. Six months ago, it was 3.42%.
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