Long-term monthly increases in the unemployment rate for no deposit mortgages since last year saw a slight reversal in May.
The number of non-bank mortgage lenders and brokers fell from 386,500 downwardly revised values in April to 385,900 last month, according to the latest figures from the Bureau of Labor Statistics.
The plateau in hiring estimates for non-custody accounts reported on Friday follows anecdotal reports of mortgage-related reorganizations by banks and non-banks over the past week.
CFBank reported Thursday that it is winding up its direct customer mortgage business to focus on traditional retail again; and Homepoint, a non-depot that primarily lends through the wholesale channel, launched a new service model on Monday that focuses on regional hubs.
Margin compression and increased market competition have driven change at the bank. (Depositors have generally been more cautious than non-depositors in participating in the recent mortgage boom.)
Meanwhile, in June, broader US employment numbers, reported with less lag than mortgage industry estimates, rose and US companies created 850,000 jobs.
In addition, employment in residential construction – including construction companies in the specialist trade – rose by 15,200 in June. That suggests that jobs in the sector are "developing at a more robust pace than in recent months," said Fannie Mae chief economist Doug Duncan.
Unemployment surprisingly reversed its recent decline, rising slightly from 5.8% to 5.9% last month, but was partly driven by a sharp increase in the number of people who left their jobs voluntarily. (Unemployment can be underestimated by up to 0.2% due to a persistent BLS misclassification error.)
These voluntary departures could be "a strong signal of the recovery in the job market," as they suggest these individuals are confident of finding more attractive jobs elsewhere, Duncan said in a statement emailed.