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August Multifamily Delinquency Rates Data

In August, the Trepp CMBS delinquency rate dropped to its lowest level in six months. After several months of largely moderate improvements, the August figure represented a significant drop. Following two massive increases in May and June 2020, the rate has now declined for 14 months in a row.

August's delinquency rate was 5.6 percent, down 47 basis points from July's figure. The percentage of loans that are 30 days late is 0.4 percent, down 10 basis points from the previous month. In terms of loans in the grace period, 2.4 percent of balance loans missed their August payment but were fewer than 30 days past due.

This was a month-over-month decrease of 51 basis points. In August, the percentage of loans with a designated servicer declined to 7.8% from 8.1 percent in July. In August, the percentage of loans on servicer watch lists increased to 29 percent, up from 27.6% in July.

In August, the ratio of A/B loans was 2.4 percent. The aggregate US CMBS delinquency rate is down 338 basis points year over year. The rate has dropped 217 basis points year to far. The percentage of loans that are extremely delinquent has dropped 37 basis points this month to 5.2 percent. The CMBS delinquency rate in the United States was 9% a year ago, and it was 6.8% six months ago.

In August, the CMBS 2.0+ delinquency rate dropped 39 basis points to 5.1 percent. The rate is 310 basis points lower than it was a year ago. The percentage of CMBS 2.0+ loans that are substantially delinquent has dropped 28 basis points this month to 4.7 percent.

With the curing/correction of the Parkmerced loan from last month, the multifamily delinquency rate fell 234 basis points to 2.2 percent for property types CMBS 1.0 and 2.0+. The multifamily delinquency rate fell 233 basis points to 2.2 percent for CMBS 2.0+ property categories.

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Source: Trepp