GOLDEN VALLEY, Minn. - Hundreds of Wells Fargo employees in Minnesota found out Wednesday they were out of a job.

332 jobs related to the mortgage business have been cut locally. A total of 1,865 Wells Fargo "mortgage team members" got the same notice.

In an email to KARE 11, a company spokesperson said the demand to refinance mortgages has dropped which lead to the cuts.

"As always, we are committed to retaining as many team members as possible, and are working with them to identify other opportunities within Wells Fargo," said spokesperson Peggy Dunn.

Dunn did not know how many employees could get other jobs with the company.

Industry experts were not surprised by the announcement.

"I think there was great pent up demand and the pent up demand is pretty much over. But there is still healthy demand," said Kris Wilson, a loan officer in the Twin Cities.

Wilson has seen a similar drop when it comes refinancing at her company. She believes some of it has to do with lower demand this time of year.

The decline is also believed to be due in part because interest rates have jumped. In May, the rate on a 30-year fixed mortgage was 3.5 percent. In August, the rate was at 4.46 percent, according to Freddie Mac.

"One percent interest rate will make a substantial difference in your monthly payment especially for a larger mortgage," said Tom Musil, real estate expert.Musil is a professor at the University of St. Thomas who still believes the housing market is on the right track.

"It has not hurt the level of activity of purchasing of existing or new homes. That market remains strong," he said.

Wilson agrees.

"The housing fundamentals are good and that's probably more predictive to where the housing market is going to go," she said.

Many experts predict the market will continue to go up, although it is little consolation for people down on their luck, looking for a new job.

"It's unfortunate," said Musil.