Housing and CRE distress: Foreclosures, debt and affordability crisis

Mortgage rates above 7% are producing a transaction freeze: 20.8% of listings have price cuts, inventory is rising, pending sales are weakening and payment burdens are up about 12% year over year. Serious delinquencies, foreclosure starts and inventory remain elevated, while office CMBS delinquency is 13.2% and about $39 billion matures within a year. Equity cushions limit nationwide contagion, but FHA, recent-vintage, rural and underwater borrowers remain vulnerable.