Tuesday, December 1, 2009

Commercial Mortgage Defaults Rise to 3.4% in Third Quarter

According to recent reports, the commercial mortgage default rate on loans held in U.S. banks more than doubled in the third quarter, increasing to 3.4%. A year earlier commercial mortgage defaults stood at 1.37% and were at 2.88% in the second quarter. This development means that default rates are now at their highest levels since 1993.

Of all loans, those originating between 2006 and 2007 have experienced the most troubles, due to their typically high amount of debt financing.

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