I'm surprised the knock on effects from the low number of new home purchase transactions hasn't hit the economy harder yet. Prices may not be falling much. But when you have 30-40% less house sales than you had a few years ago in many markets??? This has to be hitting other parts of the economy. That hits realtors, loan officers/processors/underwriters, escrow companies, title insurance, furnishings, etc... hard.
I was in the conventional mortgage lending business from 2001-2015, and we had some months where business dried up, but never was it as bad as it must be today for mortgage companies. Purchase transactions down 30%-40% year over year, and refinances have just plummeted. I would expect to hear about a lot more layoffs in the mortgage industry. Realtors must be starving. This has to be a depression for realtors, LO's and their staff, escrow, title, appraisers, etc...
Yes! Unfortunately many thought they could use a few tricks to ride this out by buying volume and other small players. But the music is stopping as the expenses catch up and the soft landing narrative gets obliterated by the ten year going on a tear. Like December of last year this move in my opinion will be a splash of cold water and we will start hearing about layoffs again soon.
I'm surprised the knock on effects from the low number of new home purchase transactions hasn't hit the economy harder yet. Prices may not be falling much. But when you have 30-40% less house sales than you had a few years ago in many markets??? This has to be hitting other parts of the economy. That hits realtors, loan officers/processors/underwriters, escrow companies, title insurance, furnishings, etc... hard.
I was in the conventional mortgage lending business from 2001-2015, and we had some months where business dried up, but never was it as bad as it must be today for mortgage companies. Purchase transactions down 30%-40% year over year, and refinances have just plummeted. I would expect to hear about a lot more layoffs in the mortgage industry. Realtors must be starving. This has to be a depression for realtors, LO's and their staff, escrow, title, appraisers, etc...
Yes! Unfortunately many thought they could use a few tricks to ride this out by buying volume and other small players. But the music is stopping as the expenses catch up and the soft landing narrative gets obliterated by the ten year going on a tear. Like December of last year this move in my opinion will be a splash of cold water and we will start hearing about layoffs again soon.