Nonbank mortgage jobs dip as broader employment sees weak gains

Nonbank mortgage jobs dip as broader employment sees weak gains
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Signs are displayed outside the US Department of State building in Washington, DC, US, on Tuesday, August 18, 2020. The number of Americans filing for unemployment benefits has fallen below a million for the first time since the pandemic began in March, a landmark that highlights the depth The economic damage and the long road to recovery from the worst downturn since the Great Depression. Photographer: Erin Scott/Bloomberg

Erin Scott/Bloomberg

The latest employment estimates for non-depositors in the housing finance industry eased in line with Recent layoffs In companies like better And InterfirstThe broader labor market added jobs at a slower pace.

The number of people on file for bankers and brokers’ payroll in November fell to 390,000 from an upwardly revised 391,800, according to the Bureau of Labor Statistics. Total US jobs, which were reported with the least delay, rose by 199,000 in December, short of consensus estimates and November’s addition of 210,000 jobs. Despite weak employment gains in the broader market, unemployment eased to 3.9% in December from 4.2% the previous month on an unrevised basis. When adjusted for a persistent misclassification error, unemployment was 0.1% higher than it has been reported in the past two months.

Overall, the BLS numbers generally indicate that while the job market is much better than it was a year ago, Omicron its gains may have eroded; The mortgage industry may move into a period of employment normalization.

Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association, noted that unemployment may be key to what happens next in housing finance, where it is likely to play a key role in monetary policy decisions about interest rates.

“The MBA expects the unemployment rate to fall to 3.5% by the end of 2022, which is in line with the latest Federal Reserve projections and will support faster interest rate normalization this year,” he said in an emailed statement.

The strength of the housing market and supply conditions in the face of strong demand will partly determine how much non-bank lenders will be employed in the future. This may not be apparent until spring, when the winter slowdown usually ends.

“Residential construction (including specialty commercial contractors) recorded a decline of more than 4,000 jobs in December compared to gains in recent months, which we expect will do little to ease supply constraints,” Fannie Mae Chief Economist Doug Duncan said in an emailed statement. “.


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