The delinquency rate for securitized commercial mortgages fell for the twelfth consecutive month in May, capping off a year of steady improvement.
Trepp reports the commercial mortgage-backed securities delinquency rate fell 17 basis points to 6.27 percent in May from a month earlier. The May reading is nearly three percentage points lower than the year ago period of 9.07 percent and well below the peak of 10.35 percent in in July 2012, reports GlobeSt.
Trepp reported $1.3 billion in new delinquencies, $1 billion in resolutions and $800 million in cured loans in May. That brings the balance of delinquent loans to $33.6 billion from $34.1 billion a month ago.
“The CMBS market continues to just plug along nicely,” Manus Clancy, senior managing director at Trepp, told GlobeSt. He added that “the resolution of defaulted legacy loans continue to push the delinquency rate lower.”