Historic Housing Shock: US Banks Lose Money On Mortgages, Amidst US Dollar Collapse

It’s been just reported that the US banks seem to be losing cash on mortgages. Check out the latest reports about this below.

US banks are losing money on mortgages for the first time on record, according to a new research report from the Mortgage Banker’s Association (MBA).

The report is diving into the latest stats from 2022, and it makes sure to reveal a precipitous drop in revenue for financial institutions that issue real estate loans to businesses, investors, and everyday Americans.

“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.”

According to the latest reports coming from the online pubcalition Daily Hodl, it seems that this is the first time mortgage lenders have collectively been in the red since the MBA began tracking these stats back in 2008.

The report attributes the losses to surging mortgage rates in a relatively short amount of time, combined with “extremely low housing inventory and affordability challenges.”

Not too long ago, we were revealing that the founder of a Boston-based investment management firm says the US dollar is heading toward total collapse. This will turn out to be an event that will fuel a massive rise in the price of Bitcoin.

Larry Lepard, founder, and managing partner at Equity Management Associates, made sure to explain the fact that it’s now obvious that the dollar will continue its decades-long spiral of depreciation to the benefit of hard assets like BTC.

“I think the intelligent people in the world and ultimately most people get the joke and realize that fiat currency is losing value consistently, and as that trend grows people will go to Bitcoin.”

He continued and said the following:

“They’ll go to Bitcoin. They’ll go to gold. They’ll go to property. Nobody’s going to be stupid enough to buy bonds from a set of governments that have proven they can’t manage the currency correctly.”

Check out our previous article in order to find out more.