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@ f0fd6902:a2fbaaab
2025-06-11 07:08:21
Multifamily Delinquencies Are Now Higher than During the Great Recession
https://mises.org/power-market/multifamily-delinquencies-are-now-higher-during-great-recession
Fannie Mae and Freddie Mac (also known as “GSEs”) have released their April reports on their mortgage portfolios and mortgage delinquencies. Both Fannie and Freddie report that serious delinquencies in multifamily are rising to multiyear highs.
""Commercial mortgage delinquencies increased in the first quarter, according to the Mortgage Bankers Association’s latest Commercial Mortgage Delinquency Rates Report.
“Commercial mortgage delinquencies rose across all major capital sources in the first quarter of 2025, reflecting growing pressure on certain property sectors and loan types,” said Reggie Booker, MBA’s Associate Vice President of Commercial Real Estate Research. “While delinquency rates remain relatively low for most investor groups, the uptick in CMBS delinquencies signals heightened stress in parts of the market that lack refinancing options or other challenges.”
MBA’s quarterly analysis looks at commercial delinquency rates for the top five capital sources: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. Together, these investors hold more than 80 percent of commercial mortgage debt outstanding.""
So, conditions are not exactly ideal for landlords raising rents to make up for rising interest rates on multifamily mortgages.
Nor is there likely any relief in sight in terms of interest rates. The Trump administration’s continued embrace of mega-deficits will flood the economy with rising levels of government debt, causing more competition for mortgage-backed securities which will push down bond prices, thus pushing up interest rates further. The current upward trend in multifamily delinquencies is likely to continue.
https://stacker.news/items/1003222