CNBC’s Diana Olick joins ‘Squawk Box’ to break down the weekly read on mortgage demand. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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LEARN MORE ABOUT: Bank Failures
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The mortgage demand in the United States has fallen significantly as bank failures have hit jumbo loan rates. The decrease in demand can be attributed to several factors, including the unwillingness of banks to lend to borrowers with poor credit and the general lack of confidence in the housing market.
As banks continue to fail, those that remain are becoming more wary of taking risks when it comes to lending. This is particularly evident in the jumbo loan market, where larger, riskier loans are being offered. Banks that are still lending are now requiring higher credit scores and larger down payments from borrowers, making it increasingly difficult for many potential buyers to obtain loans.
Moreover, the recent economic fallout of the pandemic has created a general feeling of uncertainty among potential buyers. Many people have lost their jobs or have reduced incomes, making it difficult for them to qualify for loans even if they have good credit. Additionally, some borrowers are concerned about the stability of the housing market, which has seen both declines and increases over the past several months.
Meanwhile, interest rates have remained relatively low, however, this hasn’t been enough to offset the effects of the bank failures and general uncertainty in the market. This has led to a significant decrease in mortgage demand, especially in the jumbo loan market, which was once seen as a reliable option for borrowers who needed to purchase higher-priced homes.
In conclusion, the decrease in mortgage demand, especially for jumbo loans, highlights the impact of bank failures and the current economic climate. The uncertain future of the housing market, coupled with tighter lending standards, has made it increasingly difficult for many potential buyers to obtain loans. As a result, many are putting their home buying plans on hold, waiting to see how the market develops and if conditions improve.
Commercial loans in NJ breaking records.
So I wonder if this is going to hurt the banking industry even more. Fewer people taking out mortgages, less money coming into the bank from interest payments.
Shame to earn money and a living by making more people homeless. God bless these vultures who feeds on others hard earned.
Just pay me in Dogelon Mars, and accept it as legal tender… problem solved!
It was a very bad decision to remove the Glass-Steagall Act in the late 1990s, which led to the spectacular failure of huge banks during the financial crisis of 2007–2008. To prevent another disaster, Dodd-Frank and this statute both need to be reestablished right away. What happened with SVB is only the beginning of what will happen if nothing is done to address the current situation.
The birds do not toil
Watch these Banks that are failing PackWest, Western Alliance, Zions, Comerica, KeyBank
Tick toc
Wtf kinda of bots are talking about Papaya hub
Wow, Papaya hub? Holy moly I love papaya’s
MOST PPL BUY HIGH & SELL LOW LOL!
When y'all gonna stop having a chicken brain?
Buyyy lowww and sell highhhh ignore these fuqqing clowns lol