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JPMorgan (JPM) stock posted a reasonable quarterly value this morning. Read more from banking reporter David Hollerith.
I hopped on JPM’s earnings media call and asked CFO Jeremy Burnham for his thoughts on housing after the Fed rate cut. Overall, lower interest rates don’t seem to be creating a housing boom, but activity is increasing.
Here’s what Burnham told me (emphasis mine):
“What we actually saw, as you would expect, was an increase in mortgage applications and a slight increase in refinances, which you would also expect. In terms of loans, it is notable that all future changes and year-over-year changes are coming from a very low base. Also, this is where the majority of the stock of mortgage outstandings is at the moment. No change: countries are below 6%, and many are still below 5%.
Therefore, a significant increase in refinancing would require a very large rise at the long end of the yield curve. I think the housing view in terms of home prices is generally in a tension between the economy is a little weaker and there should be a little more supply and there should be a little more construction, but generally There is a housing shortage. country. So it seems to me that the housing market is still a bit stalled. ”
