🚨 Office Delinquencies Hit Record High
Rising Costs and Foreclosures
It feels like the backlog finally started moving.
For a while, the pressure was building in places most investors could ignore.
It was sitting in servicing pipelines, delayed foreclosures, and extended office loans.
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Now that pressure is starting to break into the open, with foreclosure starts rising, repossessions climbing, and office delinquencies pushing back toward record territory.
Home sales are still sluggish and mortgage demand is still thin, which means there is less room for fresh distress to pass through quietly.
In this edition of the AltReports:
🔨 Foreclosure Pressure Starts Breaking Through
🏢 Office Loans Slip Closer to the Edge
🏠 Home Sales Stay Soft as Inventory Builds
💸 Mortgage Demand Still Looks Too Thin
⛽ Moving Costs Start Squeezing Sellers Too
Video of the Week: Equity Rich Owners Are LOSING THEIR HOMES TO FORECLOSURE
Chart of the Week: Delinquencies Hit a New Cycle High
Podcast of the Week: How A $30K Property Turned Into Financial Freedom
Foreclosure Filings Accelerate as the Backlog Starts Moving
118,727 properties had a foreclosure filing in Q1, up 26% from a year ago, while starts rose to 82,631 and REO repossessions climbed 45% to 14,020.
The bigger signal is that timelines are shrinking at the same time volumes are rising, which means delayed distress is finally starting to move through the system.
Office Delinquencies Push Back Toward Peak Stress
U.S. CMBS delinquencies rose to 3.43% in March, but the real move came from office, where the delinquency rate jumped 69 basis points to 8.76%, the second-highest level on record.
Four of the five largest new delinquencies were office loans, which tells you exactly where refinance stress is still hitting hardest.
Existing-Home Sales Fell Again as Inventory Kept Rising
Existing-home sales fell 3.6% in March to a 3.98 million annual rate, while unsold inventory rose to 1.36 million units and a 4.1-month supply.
Sales are still sluggish, prices are still holding up, and that leaves the market with less room to absorb fresh distress quietly.
Mortgage Demand Is Still Soft Even After Rates Eased
Mortgage applications slipped another 0.8% last week, and purchase applications were down 7% from a year ago, the first annual decline since early 2025.
That tells you demand is stabilizing at a weaker level, not snapping back, which matters when more distressed supply starts coming through.
Diesel at $5 Is Raising the Cost of Moving Right Into Spring
Diesel just hit $5 per gallon for the first time since December 2022, pushing up costs for movers at the same time high mortgage rates are already slowing transactions.
That combination means fewer moves, higher moving costs, and more friction for households already stretched by housing expenses.