Commercial Mortage Default Rate

As of May 2008, the national default rate on commercial mortgages is a slim 0.4%. Source: WSJ article: "Discounts? Yes, but a Fire Sale? No" dated May 9, 2008. I thought that was pretty interesting. The article states that billions, yes billions, were raised in 2007 to purchased distressed mortgages, most of it unspent since there isn't much out there to buy to give good enough returns, and since banks aren't needing to sell. The commercial market has probably weathered the worst of the credit crunch. The commercial markets do have an effect on the residential markets.