Local Bank Employees Receive Layoff Notices

Local Bank Employees Receive Layoff Notices

Mortgage rates have seen a sharp increase since May, and with less people refinancing some people are losing their jobs in Frederick County.
FREDERICK COUNTY, Md. - Many homeowners may have been avoiding refinancing their mortgages as of late, after experts say they’ve seen a one percent increase from May.

“When the rates go up people tend to get scared and slow down, and say well do I really want to go out and buy that new house,” said Douglas Boyle, President at Boyle & Co. P.A.

And while the rates are historically low right now, the increase as of late has brought less refinancing volume in for businesses. Officials say 21 employees of Wells Fargo in Frederick County, Md., received their 60 days notice Wednesday. Across the country more than 1,800 with the bank are being laid off.

But those jobs could come be coming back. Financial Expert Douglas Boyle says mortgage companies typically have a boom and bust cycle.

“Because when the interest rates go down they don't have enough loan processors and people doing the work relating to get your financing done, and than when they go up, the markets dry up, and there’s a surplus of employees, and they’re quick to lay them off,” said Boyle.

A Wells Fargo spokesperson says the company makes these decisions based on market needs. They say they try to retain as many employees as possible, while helping those being laid off find other jobs.

Some locals say with a fragile economy, any increase in interest rates only makes things harder for people.

“It's been going up and it makes it more difficult for some folks to refinance but if you have the opportunity and it works for them it's a great idea,” said Larry Smith, of Frederick County, Md.

Others say for them, they’ve been saving lately.

“Two years ago I was really beaten down about how much my mortgage was and I was able to refinance my mortgage and shave off a percentage and a half,” said Luke Zeller of Frederick.

While it all really depends on your current rate, Boyle says the Federal Reserve continues to try and keep the interest rates low to stimulate the economy. When and if that happens, some fear those bond purchases could become less and less, and rates will move higher again.

Page: [[$index + 1]]
comments powered by Disqus