Mortgage Delinquency Rate Continues to Rise

SAN DIEGO—CRE delinquency rates are rising dramatically for office, according to Jamie Woodwell, vice president and head of CRE research at the Mortgage Bankers Association.  That likely is not a surprise to observers but as Woodwell released the national delinquency rate survey MBA conducted, he emphasized that this is a huge industry, and not only are the property types performing differently, but within them, they are all different. “Each property is different, each owner is different and you cannot paint a broad breaststroke,” he said.

The delinquency rate was up 26 basis points from the third quarter of 2023 but down 8 basis points from one year ago, explained Woodwell. The historical average for the seasonally adjusted mortgage delinquency rate from 1979 through 2023 is 5.25 percent. Of particular note, FHA delinquencies were up 131 basis points, the MBA survey says. The  delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.88 percent of all loans outstanding at the end of the fourth quarter of 2023.