Bank Loses $200M on Single Building
A Dutch bank just dumped a San Francisco office building for 75% less than its 2019 value – part of a massive real estate meltdown.
For the first time in 25+ years, America is tearing down more office space than building it, with 1 in 5 offices sitting empty.
Meanwhile,mortgage applications plummeting, home loans at 1990s levels, and insurance costs rising six times faster than wages.
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Banks Getting Rid of Bad CRE Loans
Dutch megabank ING sold a defaulted two-tower San Francisco office property for $177 million, representing a 75% discount from its 2019 purchase price of $722 million. ING lost about $235 million (57% of the loan value) while the original property owner Paramount Group lost their entire $320 million equity investment.
More Office Space is Being Removed than Added this Year
US mortgage lending cratered in Q1 2025, hitting its lowest level since the mid-1990s as originations plummeted 23% quarterly and 17% annually. “The Great Downsizing” accelerates as costs trump presence.
Decline in Mortgages for Home Purchases Drives Broader Drop in Home Loan Market
Homeowners insurance premiums skyrocketed 19% year-over-year in April 2025, vastly outpacing meager 3.5% wage growth. This creates a severe affordability crisis, especially in disaster-prone states like Florida and Texas where premiums are highest.
Home Insurance Rates Growing at Nearly Double the Rate of Homeowner Income
Mortgage applications plunged nearly 15% last week, hitting a six-month low as interest rates resumed climbing. This creates a severe affordability crisis, especially in disaster-prone states like Florida and Texas where premiums are highest.
Application Demand Ebbs For Both Purchases and Refis
Mortgage applications plunged nearly 15% last week, hitting a six-month low as interest rates resumed climbing. Refinance activity continues to struggle as borrowers hold out for better rates, with the average refinance loan size dropping to its lowest level since July 2024.
‘Zombie Properties’ Creep Up, But U.S. Home Vacancies Hold Steady
The number of homes in foreclosure rose 4.8% from Q1 to Q2 2025 after five consecutive quarters of decline, with zombie properties increasing in 30 states and Washington D.C.The increase signals underlying distress despite stable headline vacancy numbers.
