Bank of America Corp (BAC), Wells Fargo & Co (WFC): Why Reading Between the Lines Will Help Banks Decipher Housing Opportunities

Though Wells Fargo & Co (NYSE:WFC) reported an increase in mortgage originations during the second quarter, it had been clear that the pipeline for new loans was much smaller than it had been exiting the first quarter. Bank of America Corp (NYSE:BAC) and JPMorgan Chase & Co. (NYSE:JPM) reported a decline in new home loan revenue in the second quarter.

Reading between the lines
Though it may seem mixed, the big news from this morning’s housing headlines is really all about buyer demand. The banks may have some work ahead of them in order to get more buyers to apply for loans (read: Rates at historical lows! Buy Now!) but the demand for homes and opportunities to lock in low interest rates are drawing more people into the recovering housing market. Whichever banks can grab hold of that demand and translate it into new mortgages will be king of the hill.

The article Why Reading Between the Lines Will Help Banks Decipher Housing Opportunities originally appeared on Fool.com and is written by Jessica Alling.

Fool contributor Jessica Alling has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo.

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