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.

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