The percentage of loans paying off at their maturity date increased in January, according to CMBS data provider Trepp that just released its January Pay Off Report.
Last month, 40.8% of loans that reached their balloon date paid off. This increased around three points from December's 37.5% reading.
The December reading had been the lowest in eight months. January's 40.8% figure was below the 12-month rolling average of 44.1%. With all the averages, Trepp added the averages of each month and divided them by 12 so there was no balance weighting across the months.
By loan count, 51.3% of the loans paid off. This was almost the same versus December's number of 51.2%. In terms of loan count, the 12-month rolling average is currently at 50.2%.
Before 2008, the payoff percentages were usually upwards of 70%. However, since the start of 2009 there have only been three months where over half of the balance of the loans reaching their balloon date actually paid off.