Multifamily Delinquency Rate Rises to Multi-Decade High

Fannie Mae and Freddie Mac have reported that serious delinquencies in multifamily are rising to multiyear highs.

Freddie Mac, in particular, shows delinquency rates at the highest level in more than 20 years.

For August, the GSEs reported that seriously delinquent multifamily mortgages (60+ days delinquent) at Fannie Mae fell to 0.57%. That’s down from July’s 0.62% and from August 2025’s 0.68%.

Fannie’s delinquency rate, however, has risen significantly since December 2022, when it was 0.24%.

Freddie Mac’s delinquency report shows delinquencies above the Great Recession peak.

Serious Delinquency Rate

In August, Freddie Mac reported the multifamily serious delinquency rate was 0.64%, up from July 2026, which showed a delinquency rate of .6%. It is also up from August 2025’s rate of 0.48%. The Freddie Mac report shows delinquency rates heading upward consistently since February.  

Compared to August of each year, August 2026’s delinquency rate at Freddie Mac tops that of August 2011, the previous peak year for delinquencies, when August delinquencies reached 0.35%. That is the highest in well over 20 years.  

At Fannie Mae, August’s delinquency rate remains below both the Covid peak and the earlier 2010 peak.

Delinquencies remain elevated for both Fannie Mae and Freddie Mac, and that trend likely reflects slowing rent growth and waning demand for rentals as employment stagnates and the cost of living rises in areas outside housing.

Difficulty Paying Rent

Multifamily Dive reported that the share of renters who had difficulty paying for housing jumped in 2025 and was concentrated among middle-income tenants, according to research from the Urban Institute. Tenants are increasingly struggling to afford both rent and utilities, as costs for essentials rise and U.S. households spend a growing share of their income on housing, according to the report.

Overall, one in five renter households either paid rent late or missed a payment in 2025 — up from 16.5% in 2024. That marked the highest-ever percentage since researchers began tracking the measure in 2017.

The post Multifamily Delinquency Rate Rises to Multi-Decade High first appeared on The MortgagePoint.