Wells Fargo Expects Q3 Home Loan Slump and 2 Other Hot Stocks to Watch
Wells Fargo & Co. (NYSE:WFC): Current price $41.45
Chief Financial Officer Tim Sloan said at a conference hosted by Barclays in New York on Monday that his company anticipates making 30 percent fewer home loans in the third quarter because of rising interest rates. Mortgage rates on the uptick are reducing profit for banks as demand for loans plummets. Wells Fargo projects that it will make $80 billion in home loans in the current quarter, versus the $112 billion it made in the previous period; if the prediction holds, it would represent the first quarter since mid-2011 that the bank did not make a minimum of $100 billion in home loans.