By Angela Gonzales | Phoenix Business Journal
A rise in mortgage interest rates over the past several months has caused a drop in refinance applications, leading to mortgage lender layoffs.
The robust housing market in 2020 and 2021 created a labor shortage in the mortgage and title industries, causing firms to hire more people to keep up with transaction volumes, said Steven Hensley, advisory manager for Zonda housing market research firm.
“Now that the housing market has cooled, and less transactions are occurring, it is likely that some companies are realizing that they are now over-staffed,” he said. “This is part of the cyclical nature of the housing market.”
Michael Metz, operations manager for Scottsdale-based VIP Mortgage Inc., said increased rates have caused refinance volume to plummet, and purchase volume has dipped because of concerns about housing inventory and payment affordability. It has resulted in the lay off of 26 employees at the company, he said.
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