CMBS loan delinquencies plunge

CMBS loan delinquencies plunge

The delinquency rate for U.S. real estate loans in commercial mortgage-backed securities dropped for the eighth straight month in February.

The CMBS loan delinquency rate fell to 4.51 percent, a decrease of 32 basis points from January, and the lowest level since Feb. 2016, according to Trepp, a CMBS loan analyst.

The percentage of loans that are seriously delinquent, which means more than 60 days late, in foreclosure and non-performing balloons, decreased to 4.44 percent in February, down 28 basis points from the previous month. A year ago, the CMBS loan serious delinquency rate was 5.2 percent.

Multifamily remains the best performing sector for loans in CMBS with a delinquency rate of 2.4 percent in February. The delinquency rate for hotel loans made the biggest move last month, dropping 128 basis points to 3.23 percent.

The worst performing sector is retail, where the loan delinquency rate dipped 14 basis points to 6.16 percent.