Signs of a cooling labor market boost rate-cut hopes

👋 Good morning. This is Mortgage Nuggets. The email that tells you what's going on in the mortgage industry, in plain jane English.

1. Signs of a cooling labor market boost rate-cut hopes

Steady hiring and cooling wage growth last month offered the latest evidence that the U.S. economy is making progress toward a so-called soft landing that brings inflation down without a recession.

U.S. employers added 275,000 jobs in February, according to the Labor Department, a blockbuster number that far exceeded the 198,000 that economists had expected.

But behind the headline number were signs of a gradual slowdown. The unemployment rate ticked up to 3.9%, which was higher than expected, and wage growth slowed.

Read more: Mortgage rates fall as labor market normalizes

2. Mortgage credit availability increased in February

The Mortgage Credit Availability Index (MCAI) rose by 0.2 percent to 92.9 in February. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.

The Conventional MCAI increased 0.5 percent, while the Government MCAI remained unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 0.1 percent, and the Conforming MCAI rose by 1.6 percent.

“There was a slight increase in credit availability for refinance loan programs last month. The purchase market, however, continues to be impacted by supply and affordability constraints, due to higher mortgage rates,” said Joel Kan, MBA’s Vice President.

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3. Catch up quick

🤝 The rise of non-romantic home co-ownership in America. (JW Surety)

❌ The CFPB is going after ‘junk fees’ mortgage lenders charge at closing. (CFPB)

📜 Title waiver pilot program will have little impact on the industry. (Fitch Ratings)

4. Charted: Shift in home prices, as tracked by the Freddie Mac House Price Index

Click here for a searchable chart with all 384 metros tracked by Freddie Mac

5. Ex-Summit executive alleges wrongful termination over illegal recruitment methods

A former executive at Summit Funding, Brian Mitchell, has filed a lawsuit against the company and its president, Todd Scrima, alleging wrongful termination.

Mitchell claims he was fired for raising concerns about illegal practices involving accessing confidential information from competitor Movement Mortgage to recruit employees.

Despite Mitchell's warnings about the legality of these actions, Summit terminated him instead of addressing the issue. The lawsuit details instances where Mitchell was allegedly instructed to use confidential data from Movement, leading to his refusal and subsequent termination.

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

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