Will the Mortgage Boom Continue for Banks?
Mar 19th 2013 3:26PM
Updated Mar 19th 2013 3:32PM
In the following video, Motley Fool financial analysts David Hanson and Matt Koppenheffer talk about the continuing upward trend for housing starts and home prices, and discuss whether or not this translates into big banks continuing their tear from last year.
David tells investors that while much of the banking boom from last year for big banks was driven by mortgage banking, much of that was related to homeowners taking advantage of the current temporary low interest rates to refinance their mortgages. David takes a look at what this means for banking investors in the short term vs. the long term.
One of the big banks that had a strong 2012 amid a flurry of mortgage activity was Wells Fargo. This bank's dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains? To help figure out whether Wells Fargo is a buy today, I invite you to download our premium research report from one of The Motley Fool's top banking analysts. Click here now for instant access to this in-depth take on Wells Fargo.
The article Will the Mortgage Boom Continue for Banks? originally appeared on Fool.com.David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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