After housing prices have been trending higher, it was a bit of a surprising to see construction data pointing to a slowdown. Investors in banks like Wells Fargo (NYSE:WFC) are betting on the continued strength of the housing and construction market.
Despite the slowdown in overall construction spending, a deeper dive into the numbers reveals the impact of government spending trends on the numbers.
In the following video, Motley Fool banking analysts Matt Koppenheffer and David Hanson remind investors to tune out the monthly noise and focus on annual trends and how banks are affected.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Wells Fargo. 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.