Warning Signs for Housing Stocks
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Two big banks today with one clear message: Housing bulls beware.
Earnings reports this morning from JPMorgan Chase & Co. (JPM) and Wells Fargo & Company (WFC) revealed significant declines in mortgage activity. JPMorgan originations fell 48 percent compared to the same period last year, while Wells Fargo applications dropped 26 percent. Given that Wells Fargo typically underwrites one quarter of the nation's mortgages during a given quarter, this weakness is significant.