Per BI
Housing unaffordability is causing banks to lose money
4/11/2023
Due to the high housing prices, even banks are losing money on every mortgage they finance. On average, every mortgage that banks originated in 2022 costs the banks $301.
A recent MBA report shared how the new losses represented a 113% decrease from how much a bank made last year. A year before its $301 loss, the bank's average income per mortgage was $2,339.
This is the first time that banks have started to lose on home loan financing since 2008. CMB, MBA's VP of Industry Analysis, Marina Walsh, gave a statement on how the situation has changed.
Walsh: “The stellar profits of the previous two years dissipated because of the confluence of declining volume, lower revenues, and higher costs per loan.”
Walsh also described the drop in purchase and refinance volume, saying that this was due to a combination of mortgage rate increases and low inventory, along with how expensive the market was.
Walsh: “Production revenues declined in 2022, but the bigger story was that production expenses ballooned to a study high of $10,624 per loan. Companies could not adjust their capacity fast enough."
Elon Musk has recently commented on the commercial real estate debt market, saying that it was "by far the most serious looming issue." He also shared how the Feds could potentially affect the entire value of the stock market.
US home sales were reportedly down by 36.9% year-over-year in January. This was as it was reaching its 12th consistent monthly decline during the time of the report, its longest streak since 1999.
The drop resulted in the US housing market's all-time low in over 12 years. Existing home sales reportedly fell to just 4 million units in January, its lowest level since October 2010.
See flow at unusualwhales.com/flow.
Other News:
- Elon Musk says the state of the commercial real estate debt market is "by far the most serious looming issue."
- US home sales were down by 36.9% YOY in January, reaching their 12th consistent monthly decline
Resources:
DOJ is investigating into Coinbase, COIN, customer data theft
5/19/2025 10:40 PMTrump signs Take It Down Act, criminalizing deepfake and revenge porn
5/19/2025 10:36 PMMoody's: Fannie Mae downgraded to AA1, Outlook stable
5/19/2025 10:34 PMThe average 30-year mortgage rate is now above 7%
5/19/2025 10:29 PM
Stay Updated
Subscribe to our newsletter for the latest financial insights and news.
+With Unusual Whales
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.