Mortgage Stats

Current Mortgage Industry Stats

mortgagestats | 05 December, 2009 12:18

Mortgage Employment

Source:Bureau of Labor Statistics/MortgageStats.com

Mortgage Industry Continues to Tap Temp Workforce

The mortgage industry continues to shrink in terms of full-time employees as companies rely more on temporary workers to deal with servicing and origination demand. The U.S. Bureau of Labor Statistics reported that mortgage companies cut 3,700 full-time workers from their payrolls in October, including 1,700 mortgage brokers. Overall employment in the mortgage banker/broker sector fell to 255,500 in October from 259,200 in September. "You have a lot of temps being hired," a Mortgage Bankers Association executive said, noting that those figures do not show up in the BLS mortgage sector data. MBA associate vice president of industry analysis Marina Walsh said that mortgage firms are definitely hiring servicing-related workers but it is hard for them to justify hiring full-timers given the volatility in the market. "To forecast what it going to happen with originations and interest rates is very difficult," she said. Meanwhile, Friday's jobs report provided some good news with the national unemployment rate falling to 10% from 10.2% previously. BLS also revised downward the job losses in October and September - by a combined 150,000. (There is a one-month lag in BLS reporting of mortgage industry employment data.)

( December 4, 2009 )

New Home Sales

Source:U.S. Department of Commerce

Market for Newly Built Houses Sees Some Revival

New home sales rebounded 6.2% in October after a slight 2.4% dip in the previous month, while the inventory of newly constructed homes plunged to a 38-year low. The U.S. Census Bureau found that the new home inventory fell to a 6.2-month supply during the month, down from a 12-month supply in January. "If you are looking for a sign that builders need to start swinging their hammers soon, this is it," said Mike Larson, real estate analyst at Weiss Research. Sales of new single-family homes rose to a 430,000 seasonally adjusted annual rate in October, up from 405,000 in September. The sales are now 5% above the pace in October 2008. "The evidence continues to show stabilization in the housing market," Mr. Larson said.

( November 25, 2009 )

Existing Home Sales

Source:National Association of Realtors

Existing Home Sales up 9.7% in October

Sales of single-family existing homes jumped 9.7% in October following an 8.7% jump in September, as first-time buyers rushed to take advantage of the $8,000 tax credit, according to the National Association of Realtors. NAR economist Lawrence Yun expects robust sales in November and a drop off in December. "With such a sales spike, a measurable decline should be anticipated in December and early next year before another surge in spring and early summer," he said. The Realtors reported that sales of previously owned single-family homes jumped to a seasonally adjusted annual rate of 5.33 million in October from 4.86 million in September. The first-time buyer tax credit was due to expire at the end of November, but Congress extended it and created a new $6,500 tax credit for repeat and move-up buyers. The extension runs from Dec. 1 through April 30 and it gives buyers with a binding sales contract an extra 60 days to close. The median sales price of a single-family home in October was $173,100 in October, down 6.8% from a year ago. The Realtors noted that 30% of sales involved short sales and foreclosed properties. Meanwhile, inventories of unsold homes, including condominiums and coops, fell to a seven-month supply at the current sales pace. The supply of homes on the market is now at the lowest level in two and a half years, the NAR chief economist said.

( November 23, 2009 )

Housing Starts

Source:U.S. Department of Commerce

Single-Family Starts Drop 6.8% as Multifamily Plummets 33%

Single-family housing starts dropped 6.8% in October from the previous month while multifamily starts plummeted 33% to the slowest pace on record. The U.S. Census Bureau reported that single-family housing starts fell to a 476,000 seasonally adjusted annual rate in October from a 511,000 rate in September. Builders held back on starting construction of new homes due to the possible expiration of the $8,000 first-time buyer tax credit, according to the National Association of Home Builders. Congress recently extended the tax credit and expanded it to repeat buyers. "We hope and expect that this will have a substantial stimulative effect on home sales and help keep the housing market solidly on the road to recovery," NAHB chairman Joe Robson said. Meanwhile, construction of multifamily units fell to a 48,000 seasonally adjusted annual rate in October from a 72,000 rate in September. Multifamily starts have fallen 78% since October 2008 as vacancy rates rise and lenders tightening lending standards.

( November 18, 2009 )