The Mortgage Bankers Association reported a drop in mortgage applications and refinance applications last week. In this video, Motley Fool financial analyst Matt Koppenheffer tells us how, if this is the beginning of a trend, it could be very scary for the banks right now, as the fees from these mortgage and refinancing applications had been a major part of banks offsetting their shrinking net interest margins. He also tells us why, if this is a trend, it could be particularly bad for Bank of America (BAC -1.07%), though he warns that we shouldn't jump to conclusions yet over one week's worth of data.
Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.