US banks lost money on mortgages in 2022, according to a report from the Mortgage Bankers Association (MBA), which noted that the average loss was $301 on each loan originated that year, vs. an average profit of $2,339 per loan in 2021.
It’s a double whammy for would-be homebuyers. Not only are interest rates soaring, it’s getting harder to qualify for a loan. The average rate on the popular 30-year fixed mortgage climbed over 7% at the end of last week, according to Mortgage News Daily, and is expected to hit around 7.125% on Tuesday. It’s been over 7% for several days.
US mortgage rates posted the biggest drop in more than two years, offering homebuyers a slight reprieve from this year’s massive surge in borrowing costs.
If you took out a mortgage over the last couple of years, there’s a good chance the holder of that loan is America’s central bank — a consequence of its monetary stimulus efforts throughout the pandemic.
Following March’s modest rise in Housing Starts and Permits, analysts expected reality to catch up with the homebuilder market in April (just as we saw in the NAHB sentiment survey slumping to 2 year lows).
ARMs — which carry variable interest rates that reset based on the market at predetermined times — accounted for 10.8% of total home-loan applications …
It’s time for Ask The Guys … the episode where you ask, and we answer! We’re tackling timely topics … like how to manage property and portfolios during the coronavirus pandemic … and more! Remember … we aren’t tax advisors or legal professionals. We give ideas and information … NOT advice. In this episode of …
Ask The Guys — Pandemic Landlording, Equity Management, and More Read More »
Old Capital Lending What we like best about the Old Capital Lending team is that they do one main thing … and they do it REALLY well. That’s Commercial Loans on Multifamily Apartment Buildings! They’ve been the go-to provider for real estate investors looking for apartment loans for over 20 years … Have we mentioned …
Real estate investing can be messy … and not just the property. Sometimes a deal … or even your entire portfolio … doesn’t fit inside the conventional lending box. So if you or your deals don’t fit the institutional mold, you’ll be glad to know there’s a wide, wonderful world of alternative funding solutions you …
Podcast: Unconventional Funding Solutions for Real Estate Investors Read More »
Some people think housing is a driver of economic growth. But that doesn’t make sense to us. Sure, a robust housing market creates a lot of jobs from construction all the way back through the supply chain. But housing itself is a by-product of prosperity, not a creator of it. After all, who buys a house first … and then …