Bank of America Corp (BAC), Wells Fargo & Co (WFC), JPMorgan Chase & Co. (JPM): Warning! Mortgage Rates Are Definitely Headed Higher

And the same can be said of homebuilders such as Hovnanian and Toll Brothers. While higher rates may crimp their customers on the margin, the broader population of people will be in a better position to purchase new homes in the face of lower unemployment. It’s worth noting, moreover, that a pickup at companies like these would provide an additional stimulant to the economy, as it’s estimated that between two and three jobs are created for every home that’s built.

The bottom line is that, yes, mortgage rates will probably go higher. The catch is that nobody knows when. It could be days, weeks, months, years, or even decades before that happens. But when it does, it’s important to keep in mind that the move is a positive sign and not a negative one.

The article Warning! Mortgage Rates Are Definitely Headed Higher originally appeared on Fool.com and is written by John Maxfield.

John Maxfield owns shares of Bank of America. The Motley Fool recommends Bank of America and Wells Fargo and (NYSE:WFC) owns shares of Bank of America, JPMorgan Chase, and Wells Fargo.

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