The recent increase in 30 year fixed home mortgage rates in the
U.S. seems to have created ripples in the mortgage industry.
Mortgage applications decreased 2% in the week ended April 1,
according to the
Mortgage Bankers Association
's index. In another development, mortgage lending giant
) reportedly eliminated 1,900 home-lending jobs, mostly those
created to deal with last year's mini-boom in refinancings.
Wells Fargo's competitors include banks such as Bank of
), Goldman Sachs (
), Citigroup (
) and UBS (UBS).
When mortgage rates hit a record low in 2010, it led to a
mini-boom in mortgage refinancing that lifted mortgage giant Wells
Fargo. But as rates slowly creep towards 5%, there could be a
significant drop in Wells Fargo's home mortgage originations (which
include refinancing as well as mortgages on new and existing
We maintain a $33.81 price estimate for Wells Fargo stock,
roughly 10% above market price.
See our complete analysis of Wells Fargo stock