Bank of America (BAC) now anticipates three Federal Reserve interest rate hikes in 2026. This revision contrasts with broader market expectations of potential rate cuts and may impact the bank's net interest income. The bank recently passed the Federal Reserve's annual stress test, confirming its financial stability.
On June 23, Citi raised its price target for Bank of America to $66. Analysts cited encouraging management commentary and potential for strong second-quarter performance as drivers for the upgrade.
The bank's latest Homebuyer Insights Report shows a consumer shift toward buying over renting. Homebuyers are also increasingly using AI during the purchase process, a trend that could increase mortgage demand.