A survey of business economists has discovered a surprisingly high number of U.S. companies, including finance, insurance and real estate (FIRE) firms, are planning to add more employees to their payrolls during the first half of this year.
If it pans out, it would be good news for the mortgage market by spurring house formation and holding down delinquency and foreclosure rates.
“The number of firms expressing positive hiring plans is at a level not seen in over a decade,” said Shawn DuBravac, a National Association of Business Economics member and chief economist at the Consumer Electronics Association.
The NABE survey (conducted between Dec. 17 and Jan. 7) found that 42% of respondents expect their firms to hire new employees over the next six months and only 7% expect their firms to shed jobs.
This resulted in a net rising index of 35% -- the highest NRI for the employment question in the 12-year history of the survey.
Half of the NABE respondents in the FIRE sector, which includes banks and mortgage lenders, expect their firms will be adding new employees to their payrolls.
