Compass, Redfin laying off staffers

Real estate brokerages Compass and Redfin are laying off employees, a sign the housing market is cooling as higher interest rates make mortgages more expensive.

Glenn Kelman, Redfin’s CEO, announced a cut of about 8% of the company’s workforce in an email to employees Tuesday, citing sinking demand, which was 17% lower than expected last month. Kelman said. Redfin employed about 6,500 people at the end of 2021.

Compass is eliminating 10% of its employees. Compass employed about 4,800 people at the end of 2021.

The rate for a 30-year fixed-rate mortgage has risen to 5.65%, the highest level since 2008, the Mortgage Bankers Association said Wednesday.