Both July and August have shown exponential growth in mortgage employees leading many to wonder what is causing the rise. This is an exciting trend that leads many to guess that this year will be the best yet for the mortgage and housing industry since the burst in the market almost 10 years ago. August showed an unexpected spike in new home sales that is the highest in almost 9 years in the Southern region of the country that comes despite the prediction of a fall in thriving home sales. This thriving hiring trend of mortgage back house employees and loan officers is a 31% increase from last year. The employee growth is estimated at about 5000+ jobs added each month of the 2016 Summer. For the mortgage industry this is a great sign as the overall US unemployment remains steady at 4.9%. What led to this comfortably steady rise in mortgage employment is due to amazing home sale rates and low mortgage rates combined with the current climate of the global economy.
Boost in New and Existing Home Sales
A solid job market has laid a just as solid foundation that has shown the sales of newly built single family homes to experience a 12% increase in July of this year. This report is the second strongest reading since April as reported by the National Association of Realtors, a great sign since experts were predicting a decline in home sales going into Summer. The NAR forecast also says that existing home sales will increase 2.8% more in 2016 and will reach 5.38 million for this year. This is the highest since 2006 and has obviously created more loan originations and as a result a rising demand for loan officers.
Lower Mortgage Rates
Americans are not only looking at steadier jobs but also lower mortgages rates which is enhancing an already boisterous home sales market. Industry experts have been predicting that the age of low interest rates was over because the Federal Reserve was threatening to raise them in the current of a somewhat thriving real estate market. But the Federal Reserve didn’t behave as forecasted and mortgage rates are still astronomically low and continuing to drop due to various influences on the global economy. It is a buyer’s market and both the real estate and mortgage industries are clearly benefiting. Since the EU is still recovering from Brexit and China’s economy is hitting a plateau in their once epic economic surge, the interest rates on both US auto loans and home loans continues to plummet.
Another reason for this exponential growth is that the amount that goes into the pocket of independent mortgage banks has doubled from the first to the second quarter of 2016 as reported by the Mortgage Bankers Association. This leaves obvious room for the independent banks to hire on back office and support staff creating a growing industry. These factors have set the stage for the perfect storm of growth in the finance and mortgage world, and that is being proven as new employee growth climbs higher each month.
Recent Comments