Chairman’s Blog: Strong Job Growth
The Great Recession caused the loss of 8.7 million jobs in the U.S. and many more around the world. Since then, 18.9 million new jobs were created here over a record 92-month period.
The unemployment rate is now 3.8%, which is the lowest since 2000. For African Americans, the rate is the lowest on record and Hispanics have the lowest in decades. This demand for workers has caused wages to rise 2.7% from May last year.
Good news, but what does this mean for Hamilton Group Funding?
A few observations:
- Since people need jobs to afford to buy homes, the recent rate of about 2.5 million new jobs per year will continue to create growing mortgage demand.
- Our company’s strong commitment to financing home purchases (nearly 90% of our business) sets us apart from most competitors.
- The accompanying wage growth now above the inflation rate means real incomes are finally growing, which gives people confidence and enhances affordability despite recent interest rate increases.
- As I mentioned in my last blog, new housing starts are far from robust, which helps to perpetuate low home-for-sale inventory. Expect mismatched supply and demand to fuel 4% to 8% price increases in many markets.
- Finally, our business is extremely well-positioned to continue our double-digit growth, as our market share significantly increases. However, with excess overall industry capacity due to a consistent downward trend in refinance originations, diligent cost control and improved efficiencies in all departments are essential to our competitiveness and continued success.
In summary, very good new job creation fuels demand for home purchases and provides us with exciting new opportunities to build on our legacy of excellence in home loans!
Thanks for all you do to make Hamilton Group Funding a great mortgage lending company.
Mark Korell | Chairman of the Board