US Banks Record First Loss on Mortgages Amid Historic Housing Shock
US banks lost money on mortgages in 2022 as homebuyers backed out of the housing market due to high mortgage rates and rising home prices. 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. This is the first time mortgage lenders have collectively been in the red since the MBA began tracking these statistics in 2008. Loan volumes in 2022 were 50% down compared to 2021, while refinancing applications also decreased.
