Mortgage lenders lost an average of $301 per loan in 2022. Average profit per loan down from $2,339 The year before, according to the Mortgage Bankers Association (MBA).
that is first time lender lost money on mortgages since the MBA started tracking numbers in 2008.
“The rapid rise in mortgage rates in a relatively short period of time has been combined with very low housing inventory and affordability,” MBA vice president of industry analysis Marina Walsh said in a statement. , meaning that both purchase and refinancing volumes plummeted.
“The excellent gains of the past two years have been eroded by a combination of lower trading volumes, lower revenues and higher cost per loan.”
around it A third of mortgage companies were profitable That’s down from 98% two years ago, according to MBA. Lenders will approve an average of $2.6 billion in loans in 2022, down from $4.9 billion a year earlier.
Findings highlight what the affordable housing market and extremely high interest rates are all about. prevent future homebuyers from taking out a mortgage.
With housing supply still low and new listings well below pre-pandemic levels, some experts believe prices will continue to rise.
