An increase in new issuance in October drove commercial mortgage-backed securitization delinquencies down for six consecutive months to lowest levels in two years, according to Fitch Ratings.

October marked the highest month for Fitch-rated issuance in five years. 

Late-pays of CMBS fell 12 basis points last month to 8.17% from 8.29% last month, marking the rate’s lowest level since 2010. Two years ago, it stood at 7.86%.

"CMBS delinquencies appear poised to drop below 8%, though large loans moving into and out of delinquency make the index susceptible to volatility," managing director Mary MacNeill of Fitch Ratings said.

Resolutions of $1.5 billion outpaced additions to the index of $1.3 billion in November. Also, $.6.6 billion in Fitch-rated deals closed last month, offsetting $4.6 billion in portfolio runoff.

Delinquency rates were highest for multifamily at 9.92%, compared to 10.45 last month. Hotels were 9.83%, up from 9.58% in October.

Retail had the lowest delinquency rates at 7.28%, which is down from 7.35% last month.

In a Moody’s report, retail properties had the second-highest loss of severity — the percentage of lost principal when a loan is foreclosed — at 47.3%.

cmlynski@housingwire.com