1,600 Mortgage Jobs Lost in May
By: Martin Lukac
Employment in the mortgage industry is down.
Approximately 1,600 full-time positions were lost last month in the mortgage banker and broker sector, according to the latest report by the U.S. Bureau of Labor Statistics.
Employment fell to 500,000 in May, from 501,600 in April. In May of 2005, there were a record 504,800 jobs.
Industry employment has steadily reached new records until February of this year, despite the declining mortgage demand.
Refinancings accounted for 49% of mortgage originations in February, according to the Mortgage Bankers Association. They are now in the mid-thirties.
The mortgage industry continues to lose more jobs than it creates. A significant portion of the numbers loss is due to the widespread job cuts by companies like Ameriquest and Washington Mutual in the past few months.
The declining mortgage market is partly due to increases in interest rates and depreciation in many metro areas across the country. After five years of record growth, the real estate industry is experiencing a significant slow down. However, most analysist believe that the market decline will be a steady and gradual experience, not a sharp fallout.
Overall, the U.S. saw a job creation of 121,000 new positions across all industries for June. There were 92,000 jobs created in May. Mortgage industry job data is one-month behind other industries.
The national unemployment rate remained at 4.6% for June.
Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!