Commercial mortgage delinquencies pile up as market pressure builds

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Commercial mortgage delinquencies pile up as market pressure builds
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Late payments on commercial mortgages are piling up as higher rates and weakening property prices bite into the sector

Late payments on commercial real estate mortgages are rising, a sign that higher mortgage rates and falling property prices are weighing on the US property market.

Commercial and multifamily property owners that were late on payment for 30 days or more or have already defaulted on their mortgages and had their properties seized by a lender rose to 3% in the first quarter of 2023, according to theDelinquencies last quarter moved in the opposite direction compared to the same period in 2022, when late payments"Ongoing stress caused by higher interest rates, uncertainty around property values, and questions about fundamentals in some property markets...

"Delinquency rates increased for every major capital source during the first quarter, foreshadowing additional strains that are likely to work their way through the system."

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