Mortgage Stocks Share in Market Rebound
Mortgage stocks were among the beneficiaries of the stock market rebound on Tuesday, as the Dow Jones Industrial Average gained 106 points. It is the first time in 2014 that the Dow closed higher.
There were 11 of the 17 Mortgage Industry Equity Composite stocks that closed higher than they did on Monday. Leading the way on a percentage basis was Ellie Mae, up over 2.5%. CoreLogic was up over 2.2% while Bank of Hawaii gained nearly 2%.
KB Home saw its stock price slide over 2%, with Home Loan Servicing Solutions down over 1% and Bank of America down nearly 1%.
In news involving a non-MIEC stock, before the market opened New York Mortgage Trust priced a 10 million share secondary offering at $6.81 per share. On Monday, the stock closed at $7.04 per share.
It traded on Tuesday between $6.75 and $6.82 per share before closing down 3.6% to $6.79.
NYMT intends to use a majority of the net proceeds to acquire distressed residential loans. It will invest the remainder in multifamily commercial mortgage-backed securities, mezzanine loans to (and preferred equity investments in) owners of multifamily properties and certain of its other targeted assets.