There’s a Silver Lining for Mortgage Companies in a Bleak Market

Big mortgage originators face a shrinking market, but better profitability could be seen on mortgage sales. Improved pricing power may come as others are forced out of the market.

March 9, 2023 . 12:37 PM

1 min read

Mortgage originators such as Rocket Cos and UWM Holdings have reported a drop in home-loan volumes for the fourth quarter.
Overall U.S. single-family home-mortgage originations dropped from over half a trillion dollars in the third quarter to about $400 billion in the fourth quarter.
Big players are still seeing pricing pressure, though partly by their own actions.
Improved pricing power for the biggest remaining players as others are forced out of the market.
Bigger players could see better gain-on-sale margins, a measure of what originators earn when selling mortgages.