Booming banks say consumers may not see lower mortgage ratesSubmitted by Bob-45 on Fri, 10/12/2012 - 21:54
By Danielle Douglas and Zachary A. Goldfarb, Friday, October 12, 3:58 PM
JPMorgan Chase and Wells Fargo, the nation’s largest mortgage lenders, said Friday they won’t make home loans much cheaper for consumers, even as they reported booming profits from that business.
Those bottom lines have been padded by federal initiatives to stimulate the economy. The Federal Reserve is spending $40 billion a month to reduce mortgage rates to encourage Americans to buy homes. Instead, its policies may be generating more benefits for banks than borrowers.