Nonbank mortgage lenders and brokers added 3,400 employees to their payrolls in June and hiring in the prior month was
Friday's job report shows employment in the mortgage banking and broker sector rose to 293,500 in June, up 5.8% or 16,000 jobs since June 2014. June marked the fifth straight month of hiring gains for the sector.
This increase in hiring reflects an improving housing market and economic conditions. Home sales are currently at the strongest pace since 2007 and refinancings are still at healthy levels.
Sales of existing homes were running at a
Economists at Wells Fargo Securities expect new-home sales will total 550,000 by year-end, up nearly 26% from 2014.
LGI Homes, based in The Woodlands, Texas, completed 853 closings in the second quarter, up 29% from a year ago. The builder caters to first-time buyers in the Southeast and Southwest regions from Charlotte, N.C., to Phoenix.
LGI Homes CEO and Chairman Eric Lipar said demand is very strong. "July continued our trend of strong home closings with a 79% increase over the previous year," he said in an Aug. 5 press release.
The Bureau of Labor Statistics' industry-specific estimates lag its national reporting by one month.
Overall, the U.S. economy created 215,000 new jobs in July. BLS revised the June jobs number up slightly to 231,000. The unemployment rate remained at 5.3%, according to Friday's job report.
"The July jobs report came in about as we and the consensus expected," according to Bank of the West chief economist Scott Anderson. "There is nothing in the report that should dissuade the FOMC from their initial rate increase in September."
The Federal Open Market Committee is expected to meet Sept. 16-17 to consider a 25-basis-point hike in the federal funds rate.
