Commercial mortgage delinquency rates exhibited “mixed” performance among major investor groups in the third quarter, according to updated figures from the Mortgage Bankers Association (MBA).

Reggie Booker, associate vice president of commercial real estate research at the MBA, noted in a press release accompanying the trade association’s quarterly commercial delinquency report that “pressures remain in certain segments of the market.”

The share of delinquent commercial loans increased for some property types in the third quarter, according to separate MBA reporting, including multifamily and health.

Office, retail, industrial and lodging-related properties posted improved delinquency rates in the third quarter.

Five capital sources hold more than 80% of outstanding commercial mortgage debt: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies and the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

CMBS delinquency rates increased to 6.59% in the third quarter, an increase from 6.36% in the second quarter and 4.82% in the second quarter of 2024.

Delinquency rates for commercial mortgages held by the GSEs also increased on a quarterly and annual basis.

Fannie Mae commercial delinquency rates rose to 0.68% in the third quarter, up from 0.61% in the second quarter and 0.44% in the second quarter of 2024.

Delinquency rates on Freddie Mac’s commercial mortgage holdings fared slightly better than Fannie’s, rising to 0.51% in the third quarter from 0.47% in the second quarter and 0.38% in the second quarter of last year.

“Property values have stabilized, but loan performance is impacted by shifting property fundamentals, including higher vacancy rates and slower rent growth.

Meanwhile, delinquency rates on commercial mortgages held by banks and thrifts were essentially flat on an annual and quarterly basis, declining 0.02% from the second quarter to 1.27% last quarter, rising just three basis points from 1.24% a year ago.

Delinquency rates for commercial mortgages on life insurance company portfolios were also essentially flat at 0.47% in the third quarter, a decline of 0.04% from the second quarter but up 0.01% from last year.

Booker added that delinquency performance remained “highly dependent on property type and loan structure” in the third quarter, noting that as commercial property values have stabilized, loan performance has been hurt by higher vacancy rates and softer rent growth.