JPMorgan Chase & Co. (JPM), Wells Fargo & Co (WFC): Banks May Suffer, but Rising Mortgage Rates Won’t Shake Housing
When megabanks JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC) reported second-quarter earnings late last week, the effect of skyrocketing mortgage interest rates was front and center. Both banks reported a drop in refinance and new mortgage loan activity, and Wells reported many fewer loans in its pipeline compared to last quarter. JPMorgan noted that refinancing could drop by 40% in the next half-year, and the overall slackening of the demand for mortgages might be worse than analysts have predicted.
In the Next breath
Banks that have reported so far have largely beaten expectations for the second quarter.
It's another upbeat sign for the housing market. In 2009, Wells Fargo invited 16,000 financially struggling Chicago-area mortgage customers to its first local workshop aimed at helping people save their homes from foreclosure.
The numbers are up?
Previously owned home sales fell unexpectedly in June as tight supply and increasing rates for mortgages imperiled the real-estate market recovery in the U.S.
Who are they trying to fool? This is the Banks , Wall Street, and our Government.. sending out propaganda bullshit.. to bad the only fools listening are investors.
The past few years have been red hot for the mortgage refinance business at banks likeWells Fargo and JPMorgan Chase. Low rates have created an environment where it made sense for virtually anyone to trade in their higher rate from years past for a new low fixed-rate loan.