Housing Market Braces For Rising Layoffs ‘Soon’ As Mortgage Lenders, Home Sellers Cut Thousands Of Jobs

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Last week, home-selling platform Opendoor blamed 'one of the most challenging real estate markets in 40 years' as it laid off 550 workers, and Wells Fargo is reportedly eyeing thousands of job cuts.

“The changes we’ve recently made are the result of the broader rate environment and consistent with the response of other lenders in the industry,” a Wells Fargo spokesman told CNBC in a statement, adding the bank"regularly" adjusts staffing levels to align with market conditions.

"Layoffs are not yet rising— and the bar to letting people go probably is higher than in previous cycles, given how much trouble firms had re-hiring people after the initial Covid shock—but that likely will change over the next couple months," says Shepherdson.Home improvement giants Home Depot and Lowe's are sure to give an update on how the housing market downturn has impacted business when they report earnings next Tuesday and Wednesday, respectively.

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