One out of every three securitized office mortgages that expired during the first nine months of 2023 was paid off by the end of September, according to Moody’s Analytics.

Credit card loans grew 1.6% in October, while 30+ day delinquency rates rose 0.16 percentage points. Currently delinquent consumers with annual household incomes of less than $50,000 were using an average of 80-90% of their available credit. These trends come as banks are further tightening consumer credit standards.

According to the Wall Street Journal, foreclosures on higher-risk commercial property loans – particularly mezzanine loans – are increasing.

The Bureau of Labor Statistics released the consumer price index for October, which showed continued easing of price pressures.

Proposals to convert vacant office space to multifamily housing face financing and development challenges.

Large U.S. banks are turning to synthetic credit risk transfers (CRT), amidst higher interest rates and proposed Basel lll capital regulations, to remove risk from their balance sheets.

Credit card delinquency rates also now exceed pre-pandemic levels, with the Fed finding this to be most acute among borrowers between the ages of 30-39, particularly those with auto and student loans.

U.S. subprime consumers are increasingly falling behind on their auto loan payments, according to Bloomberg. In September, 6.11% of subprime auto borrowers were 60 days past-due, the highest percentage since 1994, according to Fitch Ratings. Higher car prices and interest rates are increasingly squeezing subprime borrowers, which may portend stress among other borrowers as well.

CRE lending levels are decreasing as default risks on expiring debt loom. Investor demand to develop or buy CRE has diminished under the pressure of rising costs, resulting in the number of new commercial construction projects declining.

U.S. subprime consumers are increasingly falling behind on their auto loan payments, according to Bloomberg. In September, 6.11% of subprime auto borrowers were 60 days past-due, the highest percentage since 1994, according to Fitch Ratings.