MBA Reports 6.5% Delinquent Office Loan Rate in Q4

The Mortgage Bankers Association reported that office-loan delinquencies reached 6.5% in the fourth quarter of 2023, up from 5.1% in the previous quarter, impacting the commercial real estate market. While long-term interest rates have decreased, many properties and loans still face challenges such as higher rates and uncertainty about property values. The delinquency rate for office loans has risen significantly since the early days of the pandemic, posing potential challenges for refinancing in the coming year.