No, banks loan customer funds out as mortgages. It is not literally created out of thin air. You deposit money, the bank gives it to joe to buy a house, he send

No, banks loan customer funds out as mortgages. It is not literally created out of thin air. You deposit money, the bank gives it to joe to buy a house, he sends it to the seller. Now the seller has your physical money, and joe owes the bank what the bank owes you.