Mortgages backed by commercial properties saw their overall delinquency rates decline during the second quarter of 2026, according to the latest commercial real estate finance loan performance survey from the Mortgage Bankers Association (MBA).

Reggie Booker, MBA’s associate vice president of commercial real estate research, said in a press release the delinquency rates declined across most major property types and capital sources.

“While office and lodging properties continue to face challenges and CMBS delinquency rates remain elevated relative to other lenders, the overall decline in non-current loan balances points to continued stability in the commercial mortgage market,” Booker said.

The improvement was not uniform across the market, however, with stress concentrated in certain property types.

Across capital sources, loan delinquency rates for commercial mortgage-backed securities were the highest. Among CMBS loan balances, 4.82% were 30 or more days delinquent, down from 5.21% in the previous quarter.

Delinquency rates for most other capital sources remained relatively low:

• 1.19% of life company loan balances were delinquent, down from 1.47% the prior quarter
• 1.11% of Fannie Mae and Freddie Mac loan balances were delinquent, up from 0.97%
• 1.06% of Federal Housing Administration loan balances were delinquent, up from 0.96%

The MBA data analyzed end-of-quarter delinquency status by property type and share of total unpaid principal balance. Looking at the categories of office, multifamily, lodging, retail, health and industrial, only health showed a slight uptick in delinquency rates.

The survey collected information on commercial and multifamily mortgage portfolios as of June 30. Participants reported on 59% of the $5 trillion in commercial and multifamily mortgage debt outstanding as of the fourth quarter of 2025.