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Bank of America CEO says housing has more room to run

Bank of America CEO Brian Moynihan told Jim Cramer on Friday that he is seeing signs that patterns in spending are changing, and there is more room to run in the housing market.

"Housing still has room to go here. Not dramatic — we don't want to overbuild housing and we found out that wasn't the best idea," Moynihan told the "Mad Money" host.

Moynihan also revealed that data on consumer spending showed a shift in how people are spending money. Debit and credit card spending is up 5 percent year-to-date and the company has continued to gain share as people are now spending money on experience more than goods.

"A lot more experience and a lot less things," he explained.





Bank of America CEO Brian Moynihan featured on Mad Money with Jim Cramer
Abigail Stevenson | CNBC
Bank of America CEO Brian Moynihan featured on Mad Money with Jim Cramer

Bank of America also saw activity with customers drawing home equity loans to purchase large items such as new air conditioning systems and maintenance.

Essentially, people are spending money on the things they need to spend on, and housing is where money is being spent, he said.

Moynihan's commentary is in contrast to September's Home Purchase Sentiment Index from Fannie Mae, which indicated consumers are less confident that now is the time to buy a home.

Bank of America's stock is up 33 percent from its lows in June that were induced by a post-Brexit sell-off.

"I believe some of that gain comes from the use of new technologies to take market share from other banks and grow its already gigantic customer base," Cramer said.

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