The delinquency rate on securitized multifamily loans jumped over 50 basis points from August to nearly 17% in September and it continues to be the worst performing property type in the commercial mortgage-backed securities market.
Trepp LLC reported Monday morning that the percentage of CMBS multifamily loans that are 30-days or more past due hit 16.94% in September, up 52 bps from the prior month. One year ago, the multifamily delinquency rate was 14.4%.
The second worst performing sector is lodging with a 13.3% delinquency rate.
The overall CMBS delinquency rate — including retail, office and industrial loans, ticked up just 4 bps in September to 9.56%. A year ago, the 30-day plus delinquency rate was 9.05%.
There was decent demand for multifamily loans by CMBS issuers during the first half of the year, according to Trepp LLC senior managing director Manus Clancy
"Over the past three months, the tone has turned negative," he said. With much volatility and uncertainty in the market, CMBS issuers have "definitely scaled back," Clancy said.