Mortgage Hiring Stalls, Ending Six Months of Job Gains

Employment at nonbank mortgage banking and brokerage firms was steady in August, ending a six-month run of job gains.

Employment in the nonbank mortgage banking and brokerage sector remained steady at 297,100 in August, unchanged from July, according to the Bureau of Labor Statistics data released Friday. The sector has added 15,400 jobs since January.

Mortgage applications trended lower in August and then surged in September as it appeared the Federal Reserve would raise interest rates at its September 16-17 meeting, according to a Sept. 30 Wells Fargo Securities report.

"Homebuilders continue to report strengthening demand, particularly from first-time homebuyers and retirees," the WFS report reads.

"While uncertainty about the global economy and interest rates has increased, we remain optimistic about housing. The fundamentals continue to improve and interest rates remain near historic lows," the report adds.

However, Friday's BLS report was disappointing. The U.S. economy generated just 142,000 new jobs in September and job creation in August was revised downward to 136,000. The unemployment rate remained unchanged at 5.1%.

BLS industry-specific estimates lag national reporting figures by one month.

Employment in financial services activities and construction showed little or no change month over month, according to BLS commissioner Erica Groshen.

The weak jobs report is expected to keep the Fed on the sidelines and delay any hike in interest rates. "We believe that today's jobs report delivered a sufficient surprise to a cautious Fed that could delay the lift-off to next year," Fannie Mae chief economist Doug Duncan said.