A jobs report stunner

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1. A jobs report stunner

The January jobs report showed that the economy added a stunning 353,000 jobs last month, beating market expectations and pushing up Treasury yields and thus mortgage rates. The unemployment rate stayed at 3.7%.

While the latest jobs numbers underscore the strength of the economy, it remains to be seen if the data could push back the timeline for interest rate cuts, which markets were hoping would start in March.

Fed Chair Jerome Powell poured cold water on that notion yesterday, saying there would be no rate cut that month. Friday's whopper of a jobs number certainly confirms that. Wages also outpaced expectations, jumping 4.5% last month from a year earlier.

2. FHA removes mandatory mortgage branch registration requirement

The FHA on Friday announced that it has published a new final rule that eliminates a current requirement for lenders to register the branch offices where they conduct FHA Title I or Title II mortgage loan originations.

By removing these requirements, FHA hopes to involve more community-based entities in its Title I and II programs, including smaller loan originators and credit unions, the agency explained.

“As the mortgage industry has evolved to better leverage technology and remote service delivery, FHA believes that requiring a mortgagee or lender to register all branches is an unnecessary administrative and cost impediment to program participation,” the agency said in its notice.

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3. Catch up quick

🏡 Florida’s surging home insurance costs rattle seniors. (New York Post)

✂️ NewRez restructures retail division, cuts senior managers. (Yahoo)

🏦 Top-producing Draper and Kramer LOs are not transitioning to the company’s acquirer, New American Funding (NAF). (HousingWire)

📰 ION: Musk’s Neuralink implants brain chip in its first human subject. (TWP)

4. Redfin: Home tours up, sales unchanged

Redfin's Homebuyer Demand Index showed a 6% increase in requests for home tours and buying services in the week ending January 28. Home tours have risen as mortgage rates stabilized below 7%, encouraging buyers despite a 5.5% year-over-year rise in sale prices.

However, this increased interest in home tours has not yet led to a rise in home sales. Mortgage-purchase applications decreased and pending sales saw a significant year-over-year drop. This may be due to higher mortgage rates in mid-January and severe weather.

Redfin agents expect the increase in tours to convert into an improvement in pending sales over the next few months. That’s partly because of typical seasonality: Home listings and sales usually pick up as spring approaches. Source

5. Fairway shuts down wholesale channel

Fairway Independent Mortgage Corporation is shutting down its wholesale division.

"We want to thank our entire amazing Wholesale team for its dedication and professionalism over the years. We are simply making a business shift, nothing more, nothing less, in order to focus on our core business to ensure that we continue providing the best customer experience going forward." Fairway CEO and Founder Steve Jacobson said in a statement.

The last lock date on new loans will be Feb. 9 and the last day to submit them will be Feb. 16. All brokered loans, according to the announcement, must be closed by March 15.

“We wish the Fairway employees well and are saddened to learn when any organization decides to leave the wholesale channel," Valerie Saunders, president of the National Association of Mortgage Brokers, said in a statement.

You’re all caught up. See you on Wednesday!

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