As U.S. loan volumes fall, Wells Fargo mortgage staff brace for layoffs.
By The Exchange Team
Wells Fargo's mortgage volume has slowed further in recent weeks, leaving some employees idle.
And raising concerns that the lender will need to lay off more workers as the housing slump in the United States worsens.
Early in the fourth quarter, the bank had about 18,000 loans in its retail origination pipeline.
This is down 90% from a year ago, when the Covid-fueled housing boom was in full swing, said people speaking on internal matters.
In recent years, the U.S. housing market has been a roller coaster, taking off in 2020 due to easy-money policies.
And the adoption of remote work is slowing this year as the Federal Reserve raises interest rates.
Borrowing costs for a 30-year loan rose to more than 7% from 3% a year ago, squeezing homebuyers and slowing refinancing.