Delinquency rates for mortgages financing commercial properties rose sharply during the first quarter, with only industrial sector borrowings spared from broad weakening.

Commercial properties backed by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and the Federal Housing Administration (FHA) recorded particularly steep performance declines.

The delinquency rate across all capital sources increased to 4.02% over the first three months of 2026 from 3.86% the previous quarter, according to a quarterly survey of commercial mortgage performance published Monday by the Mortgage Bankers Association (MBA).

Judie Ricks, associate vice president of commercial real estate research at the MBA, noted in a statement accompanying the figures that “some of the largest increases” were observed in multifamily, office and health care properties.

Five capital sources possess more than 80% of outstanding commercial mortgage debt, according to the MBA: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies and Fannie Mae and Freddie Mac.

CMBS loan delinquency rates continued to post the most performance stress across capital sources, with 5.21% of loan balances being 30 days or more past due in the first quarter, up from 4.97% at the end of the fourth quarter of 2025. The CMBS delinquency rate was around 5.66% at the end of September and 5.14% at the end of last June.

Overall, the balance of commercial mortgages that are not current increased in the first quarter of 2026. Non-current loan share across other capital sources remained what the MBA described as “moderate.”

Commercial mortgage balances held by Fannie and Freddie rose to 0.97% from 0.63% during the previous quarter, a notable gain (from admittedly low levels) given the GSE delinquency rate had hovered around 0.6% all last year.

Delinquency rates for multifamily and health care properties insured by the FHA also posted a notable increase at the start of 2026, rising to 0.96% over the quarter from 0.65%. Performance of commercial mortgages held by life insurance companies improved slightly, declining from 1.5% in the fourth quarter to 1.47% in the first.

“The data show a gradual but persistent increase in delinquency rates in the overall market,” said Ricks, adding that “GSE, FHA, and CMBS loans also saw large jumps in early-stage delinquency.”