Employment data

The broader economy added 150,000 positions, a number the bond market initially read as likely to soften rates, but some economists interpreted differently.

The reduction in employment followed a rise in rates this summer, but hiring has generally been stable since spring.

Nonbank brokers and lenders typically scale back after the spring homebuying season and the housing market could be particularly slow for the rest of this year.

The May uptick in nonbank housing-finance payrolls came almost entirely from lender hiring as loan broker numbers plateaued and construction demand persisted.

Staff retained or added for the spring homebuying season has stemmed the tide of layoffs for now, according to the Bureau of Labor Statistics' latest figures.

Lenders and brokers have slashed two-thirds of the positions added since 2020, but the question now is whether reducing staffing to the level seen that year will be enough.

But that was not enough to offset the fourth consecutive monthly decline in total nonbank industry jobs, according to the Bureau of Labor Statistics.

The industry has cut tens of thousands of positions since January, according to the latest Bureau of Labor Statistics estimates.

But the overall employment picture was bright in July, returning to a level last seen before the pandemic, the Bureau of Labor Statistics data found.

And as long as broader unemployment remains low and inflation stays high, monetary policymakers will likely keep raising short-term rates in ways that could challenge home lending.