NEW YORK CITY-Despite historically low interest rates, the ability for borrowers to refinance commercial real estate loans remains challenging. According to a new report from Trepp LLC, the percentage of loans paying off on their balloon date remained anchored near its 12-month bottom point after plummeting downward to new lows just two months ago.

In June, only 32.3% of loans reaching their balloon date paid off, making it the second lowest total in 21 months. But in May, the rate plummeted to 29.4%, the lowest level since October 2010—which Manus Clancy, senior managing director at Trepp, says is being driven by the troublesome class of ’07 CMBS loans.

“The fact that a lot of what’s coming due right now is that 2007 originated loans, which are five year loans, about $15 billion of that class came due over the last six months and those things had a very low payoff rate,” Clancy says. “In fact, 60% of those things are still outstanding today. I don’t think the lending environment has gotten any worse over the last year, it is just the nature of the types of loans that are trying to pay off now.”