Mortgage companies shed 1,300 full-time employees from their payrolls in November despite strong refinancing activity, according to new government figures released Friday morning.
The Bureau of Labor Statistics reported that employment in the mortgage banker/broker sector fell to 245,300 in November from 246,600 in October. In addition, the October jobs number was revised downward by 1,100 positions.
Since November 2009, the industry's workforce has declined by 4%. The industry has been reduced by more than 50% from a market high of just over 500,000 jobs. Refinancings have been particularly strong the past six months, though activity is beginning to wane.
Over the past six months ending Nov. 30, the number of full-time employees has fluctuated by only 2,200 positions.
That stability may end soon if refinancings slow and mortgage originations plummet in 2011.
Economists at the Mortgage Bankers Association believe residential originations will fall to just $967 billion in 2011 -- the lowest level since 1997 -- from $1.5 trillion in 2010.
Meanwhile, Friday's BLS report shows the U.S. economy created 103,000 new jobs in December, up from 71,000 in November and 210,000 in October. The November and October numbers were revised upward from 39,000 and 172,000 respectively. (There is a one-month lag in the reporting of mortgage banker/broker employment data.)
Meanwhile, the U.S. unemployment rate fell to 9.4% from 9.8% in November.
