CMBS delinquency rate keeps dropping
Despite rising interest rates and concerns that the Federal Reserve will bring an end to the economic stimulus created by its quantitative easing program, the CMBS delinquency rate continued its happy decline.
According to Trepp, which issues monthly reports on CMBS, the delinquency rate has fallen 69 basis points during the past three months (through August) and 175 basis points during the past year. August, with the most recent numbers available, posted the lowest reading in three years — 8.38 percent. August also marked the third consecutive month the delinquency rate fell.
“There were about $2.5 billion in newly delinquent loans in August, which was slightly higher than the July total,” Trepp reports. “These loans put upward pressure of 46 basis points on the delinquency rate. Helping to offset these new delinquencies were $1.5 billion of loans that cured.”