Independent mortgage banking and brokerage firms added 500 new employees to their payrolls in May and hiring in the overall economy rebounded, according to Friday's jobs report.
Overall, employment in the nonbank mortgage and brokerage sector rose to 301,500 full-time employees in May, up from 301,000 in April. The April number was revised downward by 400 in the latest Bureau of Labor Statistics report. However, sector hiring still surged by 2,500 in April.
Last month's BLS report showed the U.S. economy created just 38,000 jobs in May, a factor that influenced the recent refinancing boom in the mortgage market. Concerns about Britain leaving the European Union put further downward pressure on mortgage rates.
But hopes for a protracted refinancing boom may be dampened by Friday's report that shows the U.S. created 287,000 jobs in June, even though May's disappointing jobs number was revised downward to 11,000.
"June's job growth represents a spectacular rebound. It's also comforting in terms of consistency on a year-over-year basis — despite some monthly swings — with around 2.5 million net new job additions over the latest 12 months," said NAR chief economist Lawrence Yun.
He also pointed out that the stronger jobs numbers are showing up in wage increases.
"The stronger job market means mortgage rates will likely rise a bit from historic lows," Yun said.
