Significant housing declines have foreshadowed nine of the 11 post-World War II recessions in the US. In December, US existing-home sales declined to 4.99 million, 10.3% below the mark from the year-ago period, according to data released earlier this week by the National Association of Realtors. That's the steepest decline in more than seven years, and it followed year-over-year declines of 7.8% in November and 5.1% in October. Home sales dropped in every month in 2018 except February, but the trend grew more aggressive in the final quarter of the year.
Some banks are showing problems. At Wells Fargo, mortgage-banking income fell by 50%, to $467 million, in the fourth quarter, while originations declined by 28%, to $38 billion. JPMorgan saw mortgage income fall to $203 million, a 46% drop from the same period last year. Originations fell by 30%, to $17.2 billion.
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