Housing Affordability Takes Center Stage: Insights from Competing Mortgage Lenders Rocket and UWM.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Source: Barron's
Housing Affordability Concerns: Housing affordability is a significant issue for Americans, with President Trump and others focusing on the impact of mortgages and interest rates.
Market Reactions: Recent statements from Trump and his team have influenced the markets, particularly affecting major mortgage companies like UWM Holdings and Rocket Cos.
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Analyst Views on WFC
Wall Street analysts forecast WFC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WFC is 98.66 USD with a low forecast of 74.00 USD and a high forecast of 113.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
10 Buy
6 Hold
1 Sell
Moderate Buy
Current: 88.950
Low
74.00
Averages
98.66
High
113.00
Current: 88.950
Low
74.00
Averages
98.66
High
113.00
About WFC
Wells Fargo & Company is a financial services company. The Company provides a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, to individuals, businesses and institutions. The Company operates through four segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. The Company provides consumer financial products and services, including checking and savings accounts, credit and debit cards, and auto, residential mortgage, and small business lending. In addition, the Company offers financial planning, private banking, investment management, and fiduciary services. It also provides financial solutions to businesses through products and services including traditional commercial loans and lines of credit, letters of credit, asset-based lending and leasing, trade financing, treasury management, and investment banking services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Weak Retail Sales: U.S. retail sales for December were flat month-on-month, missing the expected 0.4% increase, which reflects a lack of consumer confidence that could hinder future economic recovery and spending.
- Divergent Market Performance: While the S&P 500 fell by 0.33% and the Nasdaq Composite retreated by 0.59%, the Dow Jones Industrial Average managed a slight gain of 0.1%, suggesting a rotation into sectors that may be more insulated from AI-related pressures, potentially offering new investment opportunities.
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- Weak Retail Sales: U.S. retail sales for December were flat month-on-month, missing the expected 0.4% increase, which suggests a lack of consumer confidence that could hinder economic recovery and affect holiday spending expectations.
- Major Index Performance: Amid disappointing retail data, the S&P 500 fell 0.33% and the Nasdaq Composite dropped 0.59%, while the Dow Jones Industrial Average managed a slight gain of 0.1%, reflecting a divergence in market performance and investor focus.
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- Stable Credit Quality: Santomassimo emphasized that credit performance remains strong, with no signs of systemic deterioration across consumer or commercial portfolios, as delinquency rates stay low, reflecting effective credit management by banks.
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See More
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- Banking Outlook: Goldman Sachs CEO David Solomon stated at a UBS conference that 2026 is expected to be a 'constructive year' for M&A activity, with improved macroeconomic conditions and regulatory leniency likely to provide more deal opportunities, reinforcing Goldman's position as a top global M&A advisor.
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- Financial Stock Volatility: Financial stocks experienced significant declines as LPL Financial dropped 8.3%, Charles Schwab fell 7.4%, and Morgan Stanley decreased by 2.4%, indicating investor concerns about AI tools potentially replacing traditional advisory firms.
- Weak Retail Sales: U.S. retail sales for December were flat month-on-month, missing the expected 0.4% increase, which reflects a lack of consumer confidence that could hinder future economic recovery and spending.
- Divergent Market Performance: While the S&P 500 fell by 0.33% and the Nasdaq Composite retreated by 0.59%, the Dow Jones Industrial Average managed a slight gain of 0.1%, suggesting a rotation into sectors that may be more insulated from AI-related pressures, potentially offering new investment opportunities.
- European Company Performance: Siemens Energy reported a 12.8% year-on-year increase in its fiscal first quarter, with net income exceeding expectations, showcasing its competitive strength, while Heineken announced plans to cut 6,000 jobs due to weak beer sales, highlighting challenges in the industry.
See More
Financial Stocks Decline Amid AI Tool Concerns
- Financial Stock Volatility: Financial stocks experienced significant declines, with LPL Financial down 8.3%, Charles Schwab down 7.4%, and Morgan Stanley down 2.4%, as investors feared that AI tools could disrupt traditional advisory firms, indicating a shift in market sentiment towards financial services.
- Weak Retail Sales: U.S. retail sales for December were flat month-on-month, missing the expected 0.4% increase, which suggests a lack of consumer confidence that could hinder economic recovery and affect holiday spending expectations.
- Major Index Performance: Amid disappointing retail data, the S&P 500 fell 0.33% and the Nasdaq Composite dropped 0.59%, while the Dow Jones Industrial Average managed a slight gain of 0.1%, reflecting a divergence in market performance and investor focus.
- Shifting Market Sentiment: Market strategists noted a rotation into sectors that may be more insulated from the impacts of AI, suggesting a structural change in investment strategies that could influence future market dynamics.
See More
Wells Fargo Advises Clients to Buy Gold Dip
- Gold Price Correction: Gold prices have fallen over 10% from the record high of $5,594.82 per ounce on January 29, but Wells Fargo views this pullback as a healthy correction, anticipating another rally soon.
- Futures Market Rebound: U.S. gold futures for April delivery have rebounded above $5,000, although still below the historical high of $5,300, indicating sustained demand and confidence in the gold market.
- Investment Recommendation Adjustment: Wells Fargo raised its 2026 year-end price target for gold to a range of $6,100 to $6,300, implying at least a 20% gain, reflecting optimism about the current price dip as an opportunity to increase exposure.
- Market Outlook: Analyst Edward Lee noted that the gold market will continue to be driven by geopolitical uncertainty, macroeconomic volatility, and central bank demand, suggesting that the bull market is not over and investors should seize the opportunity.
See More
Positive Growth Outlook for Credit Card Loans in 2026
- Consumer Spending Growth: Wells Fargo CFO Michael Santomassimo noted at the UBS Financial Services Conference that consumer spending has consistently increased year-on-year every week, indicating strong consumer confidence that is expected to drive significant growth in credit card loans in 2026.
- Stable Credit Quality: Santomassimo emphasized that credit performance remains strong, with no signs of systemic deterioration across consumer or commercial portfolios, as delinquency rates stay low, reflecting effective credit management by banks.
- New Account Growth: The uptick in new account origination in Wells Fargo's credit card business during the second half of last year indicates a recovery in market demand, which is expected to continue into 2026, further enhancing the banks' profitability.
- Strong Consumer Spending: Bank of America CEO Brian Moynihan highlighted a 5% increase in consumer spending in January compared to the same period last year, suggesting high credit usage and strong credit quality, which will help banks achieve higher profits in the future.
See More
Market Volatility and Banking Outlook on Wall Street
- Market Volatility: On Tuesday, the S&P 500 index fluctuated, initially gaining before losing all its gains, reflecting market concerns over new AI-driven wealth management products, particularly Altruist's new tax-planning service, which could disrupt the financial sector.
- Banking Outlook: Goldman Sachs CEO David Solomon stated at a UBS conference that 2026 is expected to be a 'constructive year' for M&A activity, with improved macroeconomic conditions and regulatory leniency likely to provide more deal opportunities, reinforcing Goldman's position as a top global M&A advisor.
- Wells Fargo Investment Banking Growth: Wells Fargo CFO Mike Santomassimo highlighted that the bank's investment banking division is beginning to see actual growth following the lifting of the $1.95 trillion asset cap by the Federal Reserve, enhancing its competitiveness in the M&A market and reducing reliance on interest income.
- Boeing Delivery Performance: Boeing delivered 46 jets in January, one more than last year, marking the third-highest January in company history, with expectations of 659 total deliveries this year, indicating a gradual ramp-up in production capacity, particularly for the 737 model.
See More
Wall Street Banks Are Taking Notice of an Activist Investor
Finance Conferences in Florida: Wall Street executives are gathering in southeast Florida for a series of finance industry conferences this week.
Activist Hedge Fund's Role: A small activist hedge fund known for advocating changes at U.S. banks is becoming more assertive during this event.
See More
