Fitch Ratings prediction from earlier in the year that commercial mortgage-backed securities (CMBS) delinquencies would reach 12 percent by year-end is unfortunately looking “spot on” as delinquencies reached 8.48 percent as of August 31, 2010, an increase of 23 basis points (0.23%) as compared to July 31, 2010.

Quick background: Fitch rates $436.9 billion of U.S. CMBS transactions which are comprised by approximately 40,000 commercial real estate mortgage loans. Fitch’s delinquency “stats” includes loans which are at least 60 days overdue or are in foreclosure.

The following chart lays-out Fitch’s delinquency index by property sector:

Property Sector

August 2010

July 2010

August 2009

Hospitality

20.80%

18.64%

3.79%

Multifamily

14.18%

13.87%

5.44%

Retail

6.11%

6.35%

3.22%

Industrial

5.55%

5.20%

2.40%

Office

5.06%

5.08%

1.70%

Overall

8.48%

8.25%

3.04%

Source: Fitch.