Delinquencies in CMBS rose to 8.39% in October
Moody's Investors Service said the number of delinquencies in commercial mortgage-backed securities rose to 8.39% in October, as the rate continues to slow but remains elevated. Analysts said the Moody's Delinquency Tracker, which was 8.24% in September, has been restrained of late because of an increasing number of loans leaving delinquent status. For July through October, $12.8 billion of loans were made current, worked out, or disposed of, which is about $200 million more than the entire first half of this year, according to Moody's. Still, there were 4,042 delinquent loans in CMBS valued at $52.7 billion at the end of October, which is an increase of 71 loans and $627 million. This is the first time there's been more than 4,000 delinquent mortgages, analysts said. While the pace of loans moving out of delinquency is moderating, "the potential for monthly spikes still exists due to the large number of troubled CMBS loans on the watchlist and in special servicing," Moody's said. More retail properties became delinquent during October than other property types, with loans worth $1.16 billion becoming overdue. Although retail still outperforms multifamily properties and hotels. Nevada mortgages continue to have the highest delinquency rate of any state at 27.2%. Other states with rates in the double digits include Michigan 14.9%, Arizona 14.1%, Hawaii 13.2%, Florida 13%, Alabama 11.7%, Ohio 11.6%, Montana 10.6%, Georgia 10.5%, and Mississippi 10.5%. Write to Jason Philyaw.