Mortgage Jobs Get Cut
According to a recent report, thousand of mortgage jobs fell under the axe during the second quarter of 2014. April, May and June saw a net job loss of almost 19,000, according to a Mortgage Daily analysis. More than 20,000 positions were eliminated in the second quarter, while only about 1,600 jobs were gained. That’s up from 8,100 reported job losses in the first quarter and 3,000 in the second quarter of 2013.
Major banks are reportedly the main source for the job cuts, as commercial mortgage lending is edging lower. On the other hand, non bank mortgage jobs saw an increase.In total, Band Of America eliminated 3,900 positions in the second quarter. The biggest cuts, however, came from JPMorgan Chase, which eliminated 11,500 jobs. Mortgage employees have been under pressure since last summer, after rates jumped nearly a full percentage point. The rate spike strangled the refinance boom and big lenders – many of whom had hired extra employees to meet refinance demand – suddenly saw their business dry up. During all of 2013, some 31,931 mortgage jobs were cut.
While the housing market has experienced its highest level of home sales since 2006, the mortgage market experienced a decrease of 4.1% in recent weeks. Freddie Mac said with this decrease in mortgage applications and struggling home prices, the housing market is still having a hard time keeping its momentum.
For more information regarding mortgage loans, contact the specialists at HML Investments today.