JPMorgan has started laying off employees in its mortgage unit as soaring rates and rising inflation continue to devastate the US housing boom.

More than 1,000 workers will be affected, with around half of them being transferred to different divisions within the bank.

The reductions come at a time when several other mortgage companies are axing their workforce to balance the fluctuating market.

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A company spokesperson said: “Our staffing decision this week was a result of cyclical changes in the mortgage market.” 

“We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally.” 

JPMorgan employs 273,948 workers globally, as per the most recent quarterly filing with the Securities and Exchange Commission.

The Federal Reserve raised interest rates by three-quarters of a percentage point last week, the highest rise since 1994 after official statistics showed inflation surged against forecasts that it had peaked only a few days before.

Real estate brokers Compass and Redfin announced job cuts last week as homebuying demand slowed due to higher mortgage rates and rising inflation.

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In May, the existing home sales in the United States fell to a two-year low as median house prices reached a new high, surpassing $400,000 for the first time.

Source: Reuters

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