- Stumpf sees the central bank raising benchmark this month
- `These are great rates,' CEO says in interview on CNBC
The U.S. mortgage market can withstand a likely Federal Reserve rate increase later this month, according to John Stumpf, chief executive officer of Wells Fargo & Co., the nation’s largest home lender.
“Short rates really have little influence on mortgage rates,” which have longer maturities, Stumpf said Tuesday in an interview on CNBC from San Francisco. He cited a history of higher rates, adding that if you’re younger than 40 years old, “you think 4 or 5 percent is average. It’s not. These are great rates.”
Wells Fargo originated about 12 percent of all U.S. home loans in the third quarter, less than half its market share three years ago, as refinancings waned and competitors gained strength. The CEO said he sees a 75 percent likelihood the central bank raises rates this month.