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**Q3 Brings Mixed Results for CRE Mortgage Delinquency Rates**
Commercial mortgage delinquencies saw mixed results in the third quarter of 2025, according to the Mortgage Bankers Association’s (MBA) latest Commercial Delinquency Report. While commercial mortgage-backed securities (CMBS) experienced a notable increase in delinquency rates, banks and life insurance companies reported slight improvements.
The CMBS delinquency rate rose by 23 basis points, reaching 6.59%. Meanwhile, Fannie Mae and Freddie Mac also saw modest increases. Fannie Mae’s rate inched up by 0.07 percentage points to 0.68%, and Freddie Mac’s rose by 0.04 points to reach 0.51% at the end of Q3.
On the other hand, life insurance companies and banks saw small decreases in delinquency rates. Life companies reported a decline of 0.04 percentage points, bringing their rate to 0.47%, while banks saw a 0.02-point drop, ending the quarter at 1.27%.
“Property values have stabilized, but loan performance is impacted by shifting property fundamentals, including higher vacancy rates and slower rent growth,” said Reggie Booker, MBA’s associate vice president of commercial real estate research. “Delinquency performance remains highly dependent on property type and loan structure.”
MBA’s quarterly report analyzes delinquency rates across the five largest capital sources for commercial mortgages, which collectively account for more than 80% of the total outstanding commercial mortgage debt. However, because each source tracks delinquencies differently, the rates are not directly comparable across categories.
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