One in Eight Office Loans in Default
The office market just hit a new low.
A record wave of companies is fleeing older buildings for shiny new towers.
This “flight to quality” is gutting the value of outdated properties.
Now, one in eight office loans is officially delinquent, pushing the entire sector into crisis.
Top stories of the week
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Office CMBS Delinquency Rate Spikes to Record 12.3%, Much Worse than Financial Crisis Meltdown Peak
Extend and pretend didn’t work. Companies are now using high vacancy in new towers to upgrade and downsize when leases expire, a “flight to quality” that is crippling older offices.
Markets’ Reaction to Warsh: Silver Collapses, Gold Plunges, Dollar Jumps, Treasuries Yawn, Stocks Drop, already Battered Cryptos Sink
The media criticized Warsh back in the day for being an inflation hawk, even when inflation was relatively low. But his hostility to “money printing” appears to be etched in stone, and he and Bessent agree on it. So this pulled the rug out from under the “debasement trade.”
Apartment Rents Just Dropped to the Lowest Level in 4 Years
Austin, Texas, wins the dubious distinction of the softest rental market in the nation, with the median rent there down 6.3% from the year before. Virginia Beach, Virginia, is seeing the fastest rent growth at 5%.
Unsurprising Surge in Refi Demand Pushes Mortgage Apps Past 3 Year High
The Refinance Index climbed 20% from the previous week and was 183% higher than the same week one year ago, marking the strongest weekly pace since September. The surge was driven by the milestone news that 30-year fixed rates briefly fell below 6% for the first time in years.
Home Prices Rose to Record Highs in 2025 as Affordability Challenge Looms
The metro areas that saw the largest year-over-year growth on typical home sale profit margins were Canton, OH (up 5 points to 54%); Akron, OH (up 3 points to 59%); Chicago, IL (up 2 points to 47%); Cleveland, OH (up 2 points to 61%); and South Bend, IN (up 2 points to 59%).
Six Major Metros Are Building More Housing—but Only for the Rich
Coastal and Sun Belt cities are ramping up construction on housing—but not the kind of housing that most people can afford, with supply dominated by larger homes and tiny apartments priced for high-income earners.
