In most markets across the U.S., home prices are moving higher. This is great news for homeowners -- and for banks. After seeing a boom in the mortgage origination business because of record-low interest rates, banks are looking to pivot and take advantage of a more confident American consumer.
Despite being a major point of blame during the financial crisis, the U.S. housing market is still tremendously critical to the broader economy. After first-quarter bank results highlighted tepid loan demand, banks are eager for businesses and consumers to show a hunger for credit.
In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer rate on scale of 1 to 10 how important the housing recovery is for banks.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends and owns shares of Wells Fargo. It also owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.