Recession fears are beginning to create ripples in the Texas economy, especially in the pandemic-era hot housing market fueled by historically low interest rates.
With the Federal Reserve now raising rates to tamp down inflation, companies that benefited from the runup are facing the reality of a slowdown in mortgage refinancings and a tight supply of homes for sale.
In June, Plano-based First Guaranty Mortgage Corp. laid off the majority of its staff, terminating 428 of its 565 employees, according to a notice the company provided to the Texas Workforce Commission. Zillow Group Inc. has cut 55 Texas-based jobs since the beginning of the year as it continues its exit from the home-flipping business, and banking giant JP Morgan Chase & Co. laid off or reassigned hundreds of home-lending employees across the country.
