Sept 12 (Reuters) - U.S. Bancorp reduced itslong-term revenue and income growth forecast, citing a slump inmortgage activity as interest rates rise, the Wall StreetJournal reported.
Mortgage applications in the third quarter are down 40percent from the end of June, said Andrew Cecere, the chieffinancial officer of the Minneapolis-based bank, during aninvestor presentation in New York on Thursday. ()
The Mortgage Bankers Association said on Wednesday itsseasonally adjusted index of mortgage application activity,which includes both refinancing and home purchase demand, sank13.5 percent in the week ended Sept. 6, after rising 1.3 percentthe prior week.
U.S. Bancorp now expects long-term revenue growth of 6-8percent, compared with the 7-8 percent it had earlier projectedin its 2010 presentation, the paper said.
The bank now expects income growth of 7-9 percent, comparedwith the 8-9 percent it had forecast earlier.
- Mortgage Loans
- Mortgage Bankers Association