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.
Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo and owns shares of Annaly Capital Management, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.