A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link. What’s happening: JPMorgan\n \n reported that third-quarter home lending revenue plunged 34% from a year ago, and Wells Fargo logged a drop of 52% over the same period. The declines were due primarily to a spike in interest rates leading to a slowdown in demand for mortgages.
Employment and wage growth remains healthy, meaning homeowners can afford their mortgages and aren’t being forced to sell their homes like they were in the great recession of 2008. What’s next: Investors will next look to housing starts data next week as an indicator of where the housing market is headed.
Wells Fargo should be in jail, not still a functioning bank.