By David Lykken, Special to MPA
Last week on my Lykken on Lending radio broadcast, I was discussing the state of the economy with regular cohost and market expert Joe Farr of MBSQuoteline, and he delivered some surprisingly good news. The number of quits in the US are at the highest level they've been in 7 years. More people are quitting their jobs now than any time since 2008. So, what does that mean for the mortgage industry.
First, the number of quits expresses a sense of financial confidence in the American people. We don't quit our jobs unless we are confident that we can find others. As more people quit, then, we can assume that more jobs are available for people to find. And, as I've mentioned countless times before, the foundation to a thriving mortgage industry is getting people back to sustainable employment.
Looking at it from another angle, a greater number of quits is also good for recruiting in the mortgage industry. On the surface, it actually might seem like a bad thing. Employees have more bargaining power, so employers in the industry will have to provide more incentives to get them to stay.
But, look at it from the flip side: when people are confident they can find other jobs but they still choose to stay with you, that means you have people working for you that actually want to work for you and aren't just doing so out of desperation. Any way you slice it, the rise in the number of quits is great for our industry--and welcome news for us in trying times.
A regular contributor on CNBC and Fox Business News, David also hosts a successful weekly radio program called “Lykken On Lending” that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. Recently, he started producing a one-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper websites daily across the United States.