Worst of All Worlds for Lenders
Mortgage Lending is down more than 50% at the big banks from the 1st to 4th quarter. Higher interest rates on mortgages is leading to less refinances and fewer home purchases. But Market Watch reports that things are not all bad:
But, the news isn’t entirely grim. The dropping originations that are hitting banks’ financial results could prove to be a boon for borrowers. Banks are hungry enough for mortgage revenue that they may relax standards and increase lending for home-purchase loans. Indeed, a recent Federal Reserve report on bank loan officers signaled that some are easing mortgage standards.