Mortgage rate climb won’t dent housing recovery: Wells Fargo

New York /
Sep.September 09, 2013 01:42 PM

Wells Fargo is confident that the U.S. housing recovery won’t be delayed by climbing mortgage rates. The reason? New families are forming and homes continue to be affordable, according to Tim Sloan, chief financial officer at the San Francisco-based bank, which is the largest mortgage lender in the country.

“When you look at any sort of statistics in the demographics in terms of household creation as well as household affordability, they are still very attractive and should drive a continued recovery in the housing business,” Sloan said, speaking at an investor conference in New York.

For 30-year fixed-rate mortgages, the average rate has increased 1.2 percentage points since dropping to a 3.35-percent low four months ago. U.S. home prices continue to steadily rise, by 7.7 percent this year through June, data from the Federal Housing Finance Agency show. [Bloomberg News]Mark Maurer


Related Articles

arrow_forward_ios
From left: Black Knight CEO Anthony Jabbour and Intercontinental Exchange CEO Jeffrey Sprecher (Black Knight, Intercontinental Exchange, iStock)
Intercontinental Exchange expands mortgage play with $13B Black Knight buy
Intercontinental Exchange expands mortgage play with $13B Black Knight buy
Nima Ghamsari, co-founder, Blend Labs (Blend Labs, iStock)
Mortgage tech firm lays off 200 as rates surge, industry slumps
Mortgage tech firm lays off 200 as rates surge, industry slumps
From left: Richard Benson-Armer, chief people, performance and culture officer, Better.com; Vishal Garg, CEO, Better.com (Activant Capital, Better.com, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
“Prudent and necessary”: More layoffs at Better.com
“Prudent and necessary”: More layoffs at Better.com
Movement Mortgage CEO Casey Crawford (Movement Mortgage, iStock)
More mortgage lenders lay off staff as rates rise, applications slow
More mortgage lenders lay off staff as rates rise, applications slow
Better.com CEO Vishal Garg (Getty Images, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Better.com floats voluntary resignations after mass layoffs
Better.com floats voluntary resignations after mass layoffs
Sotheby's International Realty's Nikki Field and Compass' Diana Sutherlin (The Field Team, Compass, iStock / Photo illustration by Priyanka Modi for The Real Deal)
What brokers are seeing as mortgage rates climb
What brokers are seeing as mortgage rates climb
Mortgage rates surge, capping fastest rise since 1994
Mortgage rates surge, capping fastest rise since 1994
Mortgage rates surge, capping fastest rise since 1994
From left: Greg Schwartz and Carey Armstrong, co-founders of Tomo (Tomo, iStock/Illustration by Steven Dilakian for The Real Deal)
Digital mortgage startup Tomo expands as competition pulls back
Digital mortgage startup Tomo expands as competition pulls back
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...