Mortgage Daily Logo
mortgage news from industry experts

5th Consecutive Month of Mortgage Job Losses

Mortgage employment suffered its fifth straight month of declines. Job growth weakened for all U.S. industries as a whole.

The collective U.S. mortgage staff, including jobs classified as “real estate credit” and “mortgage and nonmortgage loan brokers,” totaled 291,900 in December, the Bureau of Labor Statistics reported Friday.

Headcount in real estate finance fell from the previous month, when 294,500 people were in the business. November’s number was significantly revised up from 280,600 originally reported.

The numbers were also lower than in December 2012, when the total was 297,600. The year-earlier number was originally reported far lower at 272,900.

In fact, the bureau revised it numbers for “real estate credit” up every month since April 2012, while each month was revised down for “mortgage and nonmortgage brokers.”

The reported mortgage industry total excludes mortgage jobs in other industries such as commercial banking. Mortgage Daily has previously estimated that the number of mortgage job among all industries exceeds 1 million.

Impacting the latest numbers were Bank of America Corp.; where around 450 layoffs have been identified specifically in December and another 4,000 have been reported for the entire fourth quarter; CashCall Inc., which laid off 769 employees on Dec. 1; and Citigroup Inc., where 700 employees were terminated on Dec. 20, and hundreds more were laid off at some point during the fourth quarter.

Jobs in “real estate credit accounted for 218,100 of December’s mortgage jobs, off from 219,800 a month earlier and 222,300 a year earlier.

“Mortgage and nonmortgage loan brokers” accounted for another 73,800 mortgage jobs, fewer than 74,700 in November and 75,300 in December 2012.

The bureau, a division of the Department of Labor, reported that U.S. nonfarm payroll employment for all industries increased by 113,000 in January — a weak showing. In response to the employment report, the price of the 10-year Treasury note was up 10/32 in mid-morning trading. Treasury yields move lower when prices move higher.

Still, U.S. job growth picked up from December, when just 74,000 jobs were added. Fewer than 175,000 monthly jobs added is considered weak.

The U.S. unemployment rate, however, improved, falling to 6.6 percent from December’s 6.7 percent rate. Unemployment hasn’t been this low since October 2008, when it stood at 6.5 percent.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION