JPMorgan Fires Hundreds Of Mortgage Bankers As Housing Market Breaks
Late last week we warned that according to real-time indicators, such as soaring mortgage rates and collapsing demand, a housing market crash appeared inevitable. Today we got the clearest sign that the banks agree when out of the blue - or rather out of the "hurricane" - JPMorgan announced it was cutting over a thousand home-lending employees and reassigning hundreds more after soaring interest rates dried up mortgage demand.
Jamie Dimon pulled off his best Jean-Baptiste Emmanuel Zorg impression when the bank decided that more than 1,000 workers will be affected by the slowdown in housing, with roughly half fired and the other half moved to other (less paying) divisions within the bank, Bloomberg reports.
"Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPM spokesperson said while probably eyeing the record move in the 30Y mortgage which has doubled from just over 3% at the start of the year to a stunning 6.13%, a move which has unleashed an affordability crisis.