Housing Unfazed as Dimon Sees JPMorgan Profit Squeeze

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon told investors last week that rising interest rates could trigger a “dramatic reduction” in the bank’s mortgage profits. According to its own analysts, the U.S. housing market will extend its recovery regardless.

The rate for 30-year home loans jumped to 4.51 percent last week from a near record-low of 3.35 percent in early May after Federal Reserve Chairman Ben S. Bernanke indicated the central bank may slow its purchases of government and mortgage bonds. Refinancing, which has slumped to the lowest in two years, may drop by as much as 40 percent in the second half of this year, JPMorgan Chief Financial Officer Marianne Lake said July 12.