According to new data from the Mortgage Bankers Association, US banks have experienced a historic first: they have lost money on mortgages they financed. The report indicates that both independent mortgage banks and mortgage subsidiaries of chartered banks have incurred an average loss of $301 per loan. This marks the first recorded profit loss since the report was first introduced in 2008.
The losses, which averaged 13 basis points, were caused by a combination of factors including a sudden increase in mortgage rates, a shortage of available housing, and challenges in affordability.
Read the Full Eruptions Market Report here