Housing Market Bust is Inevitable
JPMorgan confirms last week's real-time indicators as the bank fires 1,000 employees working in the home-lending sector...
Just last week many economists were warning of a housing market crash being inevitable. Backing their claims were real-time indicators such as soaring mortgage rates and a surprisingly collapsing demand. However, yesterday gave the easier confirmation of such news as JPMorgan announced its cut of over 1,000 home-lending employees.
"Our staffing decision this week is a result of cyclical changes in the mortgage market. We were able to proactively move many impacted employees to new roles within the firm, and are working to help the remaining affected employees find new employment within Chase and externally.”
A JPMorgan spokesperson said.
The affordability crisis was caused originally due to the record move in the 30-year mortgage which doubled from slightly over 3% at the beginning of 2022 to now being at 6.13%.
We can’t just hold JPMorgan accountable. Wells Fargo is also laying off and reassigning employees in its home-lending division. Compass and Redfin, both real-estate giants, have also announced eventual plans to cut workforces as the housing market slows down.
According to a regulatory filing, Compass stated it will be cutting about 10% of its workforce. Redfin also plans to lay off 6% of its workforce.