đ Interest Rate Dampens Mortgage Activity
The Q3 earnings reports show the impact of the fast interest rate hike.
Q3 â22 mortgage originations from the top 4 US banks are down 57%~ from the 3-year average.
The Fed raised interest rate by 300 bps in 6 months since March. The higher mortgage rate clearly dampens both home purchases and refinancing.
The market turn has led to layoffs in the banks' mortgage departments, online mortgage lenders, as well as real estate brokerages.
Credit quality disclosure:
Bank of America reported an average FICO of 768 for its mortgage portfolio. The average booked loan-to-value (LTV) ratio in Q3 is 72%.
đšQ3 Card is Back
đšIf you enjoy this post, consider receiving content like this in your inbox
Comments