Commercial real estate debt delinquency rates continue to rise with the office sector playing a particularly strong role as its constituents work through bank portfolios, says S&P Global.

The overall delinquency ratio for those loans increased quarter-over-quarter 16-basis points to 1.450%. That came from higher interest rates making refinances more difficult to obtain. The problems are concentrated in the office sector, according to this S&P analysis. However, the firm did say that there is a "sharp decline in medium-term interest rates as Federal Reserve cuts near stands to provide some relief."

Absent some disastrous surprise in inflation or the labor market, the Fed has already signaled that it will start cutting rates this month. But a sharp decline in any interest rates is far less in focus. Chances are that the September cut to the federal funds rate — the range at which depository institutions will lend to one another overnight without collateral — will be 25 basis points. It might go as high as 50 basis points, but that seems less likely.