WASHINGTON, Sept. 4 (Xinhua) -- Delinquency rates for commercial and multifamily mortgage loans went down in the second quarter of the year, as the U.S. housing market was on the mend, according to an industry report released Wednesday.
The Mortgage Bankers Association (MBA) tracks commercial and multifamily delinquency rates for five of the largest investor groups, i.e. commercial banks and thrifts, commercial mortgage- backed securities (CMBS), life insurance companies, government- sponsored-enterprises Fannie Mae and Freddie Mac. When combined, these groups hold more than 80 percent of commercial and multifamily mortgage debt outstanding.
The MBA found that in the second quarter the delinquency rates for commercial and multifamily mortgages held in life insurance companies, Freddie Mac, Fannie Mae, banks and CMBS decreased to 0. 08 percent, 0.09 percent, 0.28 percent, 2.16 percent and 7.81 percent, respectively.
"The quarterly decline in the delinquency rate of loans held in commercial mortgage-backed securities was the largest on record," said Jamie Woodwell, MBA's vice president of commercial real estate research.
Freddie Mac Chief Economist Frank Nothaft said the multifamily sector had been continuing to strengthen significantly and should maintain the momentum into 2014.
Economic fundamentals have been positive for the multifamily apartment market due to rents rising over the past few years. Multifamily values have also come back, only about 8 to 10 percent below the peak level in 2006.