U.S. Bancorp expects mortgages to be down 30%-35% in Q3 vs Q2

Business

U.S. Bancorp (USB.N) expects a 30% to 35% drop in mortgage revenue in the third-quarter from the second quarter as the housing market slows, its chief financial officer said on Monday.

Sales of new U.S. single-family homes plunged to a 6-1/2-year low in July as persistently high mortgage rates and house prices further eroded affordability, according to a recent report from the Commerce Department.

“The one area that I would say that we’re seeing a little bit of pressure is just in the mortgage banking business,” Terry Dolan told a Barclays investor conference.

That’s “in line with what’s happening in the industry,” he said.