Tuesday, January 27, 2009

Wells Fargo Blames High Mortgage Rates on "Soaring" Demand

This bloomberg article has left us a little speechless... First of all, as we point out recently, Wells Fargo has recently been hiking the rates on its 30 year (and other) conforming mortgages. Today, the bank has stated publicly that the slow drop in rates is due to "soaring" demand for mortgages... Seems nothing can stop people from inflating the next bubble as we are still in the old bubble. Curious how many of the people who are among the soaring crowds lining up in front of Wells' mortgage offices already have 2, 3 or more mortgages that are underwater or in foreclosure... No doubt Wells is really very careful this time around when approving new mortgages. Secondly, how can it be difficult to be lowering rates, i.e. be competitive with everyone else who is sub 5% on the 30 year conforming, when you are seeing this "soaring" demand. In a word, we are a little skeptical of this most recent version of media spin Sphere: Related Content
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