Why U.S. Housing Bulls Need to Be Careful

The video discusses the decline in mortgage applications at Wells Fargo and JP Morgan Chase, highlighting a significant drop in mortgage originations. This trend has been ongoing for several quarters, impacting stock investors and regional banks, which focus on lending. The video also warns about the downward trend in the housing market, affecting home builders and advising caution for investors looking to buy dips.

What percentage decline in mortgage applications was reported by Wells Fargo?

• 26%

• 48%

• 20%

• 15%

Which bank reported a 48% decline in mortgage originations?

• Bank of America

• Wells Fargo

• JP Morgan Chase

• Citibank

What has been the trend in US mortgage originations over the past several quarters?

• Stable

• Fluctuating

• Increasing

• Decreasing

How do regional banks primarily differ from larger banks like JP Morgan Chase?

• They offer higher interest rates

• They focus on investment banking

• They focus almost exclusively on lending

• They have more international branches

What should stock investors be cautious about according to the data from JP Morgan and Wells Fargo?

• Stable housing market

• Increasing mortgage applications

• The downward trend in housing and regional banks

• Rising interest rates