Delinquency rates for mortgages backed by commercial and multifamily properties have improved in recent months with the recovery, the Mortgage Bankers Association says.
However, Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research cautioned the improvement is not everywhere and to the same degree. "Performance is still property-type dependent, with the properties that saw the most immediate and dramatic impacts from the pandemic—lodging and retail—still experiencing considerably more stress than others but showing improvement. Delinquency rates are down significantly for those property types and remain muted for others."
However, he expressed confidence for continued downward pressure on delinquency rates as more later-stage delinquencies are worked through, noting what happens with early-stage delinquencies will largely be a function of the broader economy.
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