US Mortgage Lenders Losing Money Due to Unaffordable Housing and High Loan Production Costs

Banks and mortgage subsidiaries lost an average of $301 per mortgage financed in 2022, marking the first negative profit recorded by the Mortgage Bankers Association. The decrease in housing activity, high mortgage rates, and limited housing supply have led to a decline in business and increased costs of financing a loan. This has resulted in a 113% decrease from last year's average income of $2,339 per mortgage. Experts warn that the US housing market could see a significant correction as the shrinking demand leads to a drop in home prices.