As the economy improves, the delinquency rates for Chicago-area commercial mortgages, together with construction and land loan delinquencies have jumped again in the second quarter and could rise well into 2010. This may suggest that local banks won’t start making commercial real estate loans any time soon.
Delinquency rate on local commercial mortgages climbed to 6.1%
During the second quarter, the delinquency rate on local commercial mortgages has climbed to 6.1%. According to Foresight Analytics LLC, an Oakland, Calif.-based research firm, the rate has risen sharply from 5.6% in the first quarter and nearly double the year-ago quarter, when the rate was 3.6%.