Reserve

According to a recent research report from the Mortgage Banker’s Association (MBA), US banks are losing money on mortgages for the first time ever. 
The analysis, which delves into the most recent data from 2022, finds a sharp decline in revenue for financial institutions that loan money to people and corporations for real estate. 
According to the report, “Independent mortgage banks and mortgage subsidiaries of chartered banks lost an average of $301 on each loan they originated in 2022, down from an average profit of $2,339 per loan in 2021.” 
Since the MBA started keeping track of these statistics in 2008, this is the first time all mortgage lenders have experienced a loss as a group. 
According to the research, the losses were caused by rapidly rising mortgage rates paired with “extremely low housing inventory and affordability challenges.” 
In addition, from $8,664 per loan in 2021 to $10,624 in 2022, mortgage lenders are now paying more to finance loans. The rise takes into consideration expenditures for equipment, occupancy, commissions, and other production costs. 
According to Marina Walsh, vice president of market analysis at MBA, the company anticipates a significant decline in mortgage demand from purchasers during 2023. 
There is no getting around the extremely challenging conditions in which mortgage businesses are still doing business today. According to the MBA’s prediction, mortgage volume would once more decrease in 2023 before rising in 2024 and 2025. 
In order to make the cost of buying a property comparable to the cost of renting, the Federal Reserve Bank of Dallas has issued a warning that housing prices could fall by 19.5% this year. 
The risk of home price declines is so great, according to Dallas Fed researchers, that the housing “bubble hypothesis” deserves consideration. 
The post <a rel="nofollow" href="https://bitcoinworld.co.in/us-banks-losing-money-on-mortgages-in-historic-housing-shock-report/">US Banks Losing Money on Mortgages in Historic Housing Shock: Report</a> appeared first on <a rel="nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

US Banks Losing Money on Mortgages in Historic Housing Shock: Report

ItsBitcoinWorld

Other articles published on Apr 14, 2023

Number of Bitcoin Millionaires Doubles!

TMS Network (TMSN) Transcends Crypto Market Rivals Solana (SOL) And Polygon (MATIC) in The Wake o...

INFINITY PARTY BATTLE is Now Open on WEMIX PLAY!

[Ecosystem] NEOPIN's NFT partner project, "Lazy Gourmet Club"

UK Government advances metaverse and web3 strategy with new tech department

Top crypto tweets of the day – April 14th

Join our free newsletter for daily crypto updates!