Sept 12 (Reuters) - U.S. Bancorp reduced its long-term revenue and income growth forecast, citing a slump in mortgage activity as interest rates rise, the Wall Street Journal reported.
Mortgage applications in the third quarter are down 40 percent from the end of June, said Andrew Cecere, the chief financial officer of the Minneapolis-based bank, during an investor presentation in New York on Thursday. ()
The Mortgage Bankers Association said on Wednesday its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, sank 13.5 percent in the week ended Sept. 6, after rising 1.3 percent the prior week.
U.S. Bancorp now expects long-term revenue growth of 6-8 percent, compared with the 7-8 percent it had earlier projected in its 2010 presentation, the paper said.
The bank now expects income growth of 7-9 percent, compared with the 8-9 percent it had forecast earlier.