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 Wells Fargo (NYSE:WFC) reportedly eliminated 1,900 home-lending jobs, mostly those created to deal with last year’s mini-boom in refinancings.  
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 homes)
(Chart created by using Trefis' app)
We maintain a $33.81 price estimate for Wells Fargo stock, roughly 10% above market price.
- Home lenders shed workers as mortgage rates climb, Los Angeles Times
- Mortgage Rates on Fixed 30-Year U.S. Loans Increase to 4.87%, Bloomberg