Although the week ending Jan. 25 showed an 8.1% drop in seasonally adjusted mortgage applications, as reported by the Mortgage Bankers Association, this week the numbers seem to have bounced back somewhat, with mortgage applications for the week ending Feb. 1 up 3.4%, which has helped to assuage investor fears that the mortgage boom was coming to an end. In this video, Motley Fool financial analyst Matt Koppenheffer tells investors what a mortgage boom means for some of the big banks such as Wells Fargo (NYSE: WFC ) and JPMorgan Chase (NYSE: JPM ) , who else could be affected by such a trend, and why we need to take these weekly numbers with a grain of salt when trying to establish broader trends.
Wells Fargo'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, 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.