Mortgage Stocks, Dow Move in Opposite Directions

For the second day in a row, the member stocks of the Mortgage Industry Equity Composite moved in a different direction than the Dow Jones Industrial Average. On Tuesday, while the Dow was up 31 points, just five MIEC stocks closed higher than they did on Monday.

The best performer on a percentage basis was PHH, up 0.74%, followed by Bank of America (up 0.69%) and Bank of Hawaii (up 0.52%).

KB Home on the other hand lost 4.05%. Redwood Trust was down 3.86%. And the two private mortgage insurers in the MIEC, MGIC Investment Corp. and Radian Group lost 2.8% and 2.7%, respectively, as there still might be some hangover regarding Radian’s filing stating it might need more capital for Radian Guaranty.