Housing/CRE distress: Foreclosures surge, short sales rise, mortgage rates up, affordability gap quantified

Foreclosures up 21% H1 2026, but equity cushion prevents 2008-scale crisis; FHA/VA foreclosure completions near pre-pandemic levels. CMBS office delinquency hits all-time high in July. HOA/condo foreclosures jump 40% due to new reserve rules. Home equity hits $18T record but underwater mortgages up 44% YoY, 320K underwater-and-behind borrowers. Mortgage rates rise for fifth week to 6.69%. Lakeland tops US foreclosure rates driven by insurance escrow shock. New: NY Fed household debt falls $13B in Q2 (first decline since 2020) but credit card and auto debt rise; credit card debt at $1.26T with old charge-offs skewing delinquency numbers; auto delinquencies at recession levels. Georgia passes HOA registration law to address foreclosure surge. CRE supply-demand dynamics show office demand improving, other sectors nearing equilibrium.