Rocket Mortgage to trim 8% of workforce as home-loan market shrinks

Post by cdiddy2 » Thu, Apr 28, 2022, 7:18 PM UTC

hans1729 wrote: post #19

cammikebrown wrote: post #2

Seems like the bubble burst is going to be more sudden than we thought. 30 year mortgages are suddenly at nearly 5.5-6%, listings are sitting on the market for longer, and multiple cities are cracking down on Airbnb.

I mean, it's not really a burst, we're just hearing the hissing noise of the obvious leak. The true demand from people with the intend to actually live in the estates has been constantly decreasing since around 2000; the real salarys dropped since then, so did the buying power. The only reasons people found buyers at x3-x10 (!) prices were a) that there is a class of people wealthy enough to still afford the purchase…

Post by curuinor » Thu, Apr 28, 2022, 7:20 PM UTC

MikePlacid wrote: post #388

jetti wrote: post #83

I imagine that Rocket increased their workforce by more than 8% between spring of 2020 and now. I work for a mortgage company and layoffs have happened multiple times this year. With rates so low for almost two years the volume increased significantly. In order to deal with that volume the company most certainly had to hire many people and quick. The market conditions can't support keeping those individuals (or at le…

How this downsizing looks from a client's point of view: I have almost finished a 4 months long process of buying a summer house (including one failed deal), and my first financial agent - a very bright and fast girl - was fired right in the middle of my first transaction... and nobody told me a word about it - neither the manager, not the new agent, so I was sitting in the dark for a week or so. The agent that I got…

Post by throw8383833jj » Thu, Apr 28, 2022, 7:28 PM UTC

ClumsyPilot wrote: post #382

throw8383833jj wrote: post #328

Earlier quoted context omitted.

house ownership is just a legal construct. you don't really own the house, even when it's paid off. even if you own, and pay off the entire house, you'll still have to pay "rent" in the form of property taxes, an unfortunate reality.

> house ownership is just a legal construct Stange argument, all rights are legal contructs - how do I know my employer will pay me for work done, or my neighbour won't rob be in my sleep and slit my neck? If we don't trust legal constructs, we can't have a civilisation.

Post by Msw242 » Thu, Apr 28, 2022, 7:31 PM UTC

curuinor wrote: post #413

MikePlacid wrote: post #388

Earlier quoted context omitted.

How this downsizing looks from a client's point of view: I have almost finished a 4 months long process of buying a summer house (including one failed deal), and my first financial agent - a very bright and fast girl - was fired right in the middle of my first transaction... and nobody told me a word about it - neither the manager, not the new agent, so I was sitting in the dark for a week or so. The agent that I got…

they put up a non-adult to do these transactions? what the hell?

Post by jjav » Thu, Apr 28, 2022, 7:33 PM UTC

IMSAI8080 wrote: post #363

jjav wrote: post #314

Earlier quoted context omitted.

> However they are currently running at an interest rate of a little under 4% which is much higher than the rate offered on a typical 5 year year fix. This makes them unattractive when you can just perpetually keep re-mortgaging on 5 year fixes. Renewing after 5 years will presumably get you whatever rate is then? Which might be much higher. It's always better to get a fixed rate (for the life of the loan) mortgage.…

Well it's an unknowable gamble. You might also be locking in an excessively high rate. The flexible approach of continuously re-mortgaging would have been the better strategy for the last 10 years with interest rates that went down. In the next 10 years, who knows.