Although today’s ADP Nonfarm Employment Change came in better than expected, employees at Wells Fargo’s (NYSE: WFC) mortgage department have reason to worry. With retail mortgage originations down approximately 90% year-over-year, it’s likely that the bank will reduce its workforce.
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This is not surprising when considering that 30-year mortgage rates have increased to over 7% when compared to 3.24% just one year ago. As a result, the cost of buying a home has increased drastically, making it significantly harder to afford or even qualify for a loan.
The expected reduction in employees comes after the bank reduced its workforce by 6% in just the third quarter alone.
Is WFC Stock a Buy?
Turning to Wall Street, WFC stock has a Moderate Buy consensus rating based on eight Buys, five Holds, and zero Sells assigned in the past three months. The average WFC stock price target of $51.92 implies almost 10.8% upside potential.
