In this article, we will reveal the best mortgage lender in America. If you wish to look at our detailed rankings, you can go to the 15 Best Mortgage Lenders in America.
The US mortgage sector, the lifeblood of the American dream of homeownership, continues to undergo significant transformations in 2024. One of the most significant trends in 2024 is the shift in interest rates. After a period of historically low rates, the Federal Reserve’s tightening measures have pushed rates upwards over the past couple of years.
As of mid-2024, the average 30-year fixed-rate mortgage hovers around 6.8% according to Freddie Mac’s Primary Mortgage Market Survey. However, the Mortgage Bankers Association offers some good news for potential homeowners: mortgage rates are expected to stabilize in the near future. While rates are not likely to fall below 6% until at least 2025, they’re projected to hold steady through the second quarter of 2024. This is due in part to inflation remaining above the Federal Reserve’s target rate of 2%. Until inflation dips closer to that goal, the Federal Reserve is likely to keep interest rates elevated to control inflation’s impact on the economy.
On the mortgage originations front, a report by S&P Global predicts a rise in 2024, fueled by a return to normalcy in the economic climate. Despite affordability concerns, the US housing market has shown remarkable resilience. Home prices increased by 6.2% between December 2022 and October 2023. Meanwhile, the rental vacancy rates stood at 6.6% in Q3 2023. This rate falls below the historical average of 7.4% and is significantly lower than the 2009 peak of 11.1%.
Overview of Mortgage Market Players
A quick look at a list of mortgage companies in the USA will reveal different kinds of players in the market. Firstly, there are banks, led by the “Big Four Banks”: JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), Citigroup Inc. (NYSE:C), and Wells Fargo & Company (NYSE:WFC). These financial giants have extensive branch networks and offer traditional mortgage products with competitive rates. JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), and Wells Fargo & Company (NYSE:WFC) are also among the 5 Largest Publicly Traded Financial Companies in the US.
In the Q1 2024 earnings call, JPMorgan Chase & Co. (NYSE:JPM) revealed that revenue in the home lending division saw a 10% year-on-year increase. This was mainly driven by higher net interest income and production revenue. Meanwhile, originations experienced a 10% growth.
JPMorgan Chase & Co. (NYSE:JPM) also recently entered a deal with New York Community Bancorp (NYCB) to purchase approximately $5 billion in loans. Banking experts suggest that the sale of mortgage warehouse loans by NYCB is intended to strengthen the institution’s financial position and improve its liquidity.
In addition to these banks, there are wholesale lenders streamlining the mortgage process. Wholesale lenders like United Wholesale Mortgage and Rocket Mortgage act as intermediaries, providing mortgages to mortgage brokers who then connect them to borrowers. United Wholesale Mortgage ranks among the largest mortgage servicers in the US.
Credit unions and niche lenders also offer alternatives to traditional banks. Credit unions, member-owned financial cooperatives, often offer competitive mortgage rates and personalized service. However, their eligibility requirements can be stricter, often limiting membership to those who live, work, or worship in a specific area. For borrowers with unique needs, niche lenders offer specialized products.
Meanwhile, veterans can take advantage of the US Department of Veterans Affairs (VA) loan program, which offers them favorable terms and eliminates the need for a down payment. Similarly, government-sponsored enterprises like Federal Home Loan Mortgage Corp play a key role in the mortgage market, by purchasing mortgages from lenders and ensuring liquidity.
The Best Mortgage Lender in America
1. Rocket Mortgage
Total Loan Volume: $127,577,000,000
Total Originations: 464,363
Headquartered in Detroit, Michigan, Rocket Mortgage has been one of the top mortgage companies for years. It has been holding the title of largest online retail mortgage lender since 2018. In 2022, Rocket Mortgage originated 464,363 mortgages for a total value of $127.6 billion, solidifying its position in the market with a 5.5% origination share. Rocket Mortgage provides competitive mortgage rates, good customer service, and a completely digital, online-only mortgage application process. The company offers multiple loan options and customizable loan terms.
Rocket Mortgage also offers several affordable mortgage products to help low-income individuals get homeownership. The company’s ONE+ mortgage offers down payments as low as 1% without the need for mortgage insurance. This mortgage is available across the country, but it is restricted to individuals earning 80% or less of the area’s median income. Rocket Mortgage also takes part in Freddie Mac’s BorrowSmart Access program, which provides a $3,000 credit for down payments. However, this program is available only in select counties.
To learn about other top mortgage lenders in America, you can check out our detailed report 15 Best Mortgage Lenders in America.
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