For the first time since the beginning of 2006, commercial real estate mortgage defaults decreased in the fourth quarter, according to this Bloomberg article. Although the commercial default rate in the third quarter was 4.36 percent, it fell to 4.28 percent in the fourth quarter, numbers from Real Capital Analytics revealed.

The global chief economist for Real Capital Analytics said that the news bsuggests that the sectorbs contribution to bank distress may have reached a plateau,b Bloomberg reports. And while the default rates are falling, the values of real estate properties are growing.

Although itbs lower than the previous quarter, the fourth quarterbs commercial default percentage is still high, as the rate was 3.85 percent the previous year, excluding the apartment sector.

Do you think commercial real estate mortgage defaults will continue their decline? Or do you expect them to increase again soon? Leave a comment to share your thoughts.

Image: Daniel Borman via Flickr

 

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