The percentage of mortgages that were delinquent for commercial and multifamily properties — essentially businesses and apartment buildings — declined in April, according to new numbers released by the Mortgage Bankers Association. Last month marked the delinquencies’ lowest level since the onset of the pandemic, the group said.
The delinquency rates still remain elevated overall, which Jamie Woodwell, the association’s vice president of commercial real estate research, primarily attributed to lingering stress on hotel and retail properties.
By the numbers: 95.1 percent of outstanding loan balances were current last month, up slightly from 95 percent in March, according to the loan performance survey.
For lodging properties, 20.2 percent of loans were delinquent. For retail, that number was 9.3 percent. Both groups saw improvements from the previous month, however.
Participants in the survey reported on about $2 trillion in loans in April, which represents roughly half of the total outstanding commercial and multifamily mortgage debt nationwide, the association said.