Lots of layoffs in mortgage and auto LOBs. Wondering if we in Tech (Lending) are affected? I am nervous.
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It’s all relative. 6% used to be a good rate and will probably be considered good again, assuming rates keep rising.
Rates are still historically low. The issue is prices are high because there is more demand than supply and material and labor costs are keeping builders on the sidelines in combination with the rates.
Once wages catch up - unemployment is at an all time low - things will even out. Until then the average family is staying put and working on keeping up with rents rising.
How long will that take? My guess is 18-24 months as a best case.
People in tech in my group have been shifted to other groups within the company. Hagerman was interviewed by BusinessInsider a little while ago saying WF wanted to hire 2000 tech people in 2022 alone. Question is, how many of that is in the US? Also, historically, 5% rate is still super low but it's enough of a raise to layoff UWs and other fulfillment workers.
people can still pay less buying a house with 3% down when their rent is going up $300 a month.
Also, I imagine tech is relatively safe until all full automation is up and running, then you'll be chopped.
Lending Retail will be decimated.
Who in their right mind would get a mortgage now when rates are approaching 6%? That is a 1000 bucks more per month or more