PennyMac Leads Losers as Mortgage Stocks Tumble

Revived concerns about the Federal Reserve starting the easing of its bond buying program as soon as next month, as well as concerns over consumer confidence as a result of a poor report from Macy’s, sent the stock market down on Wednesday.

The Dow Jones Industrial Average lost 113 points, while 13 of the 17 Mortgage Industry Equity Composite members closed lower than they did on Tuesday.

KB Home led the gainers, up 1.43%. It was followed by Bank of America, up 0.62%, and Astoria Financial, up 0.39%. Fidelity National Financial closed unchanged.

PennyMac Mortgage Investment Trust, which priced an 11.3 million share common stock offering before the market opened, had a $1.05 per share or 4.54% drop in price on the day, to $22.10.

Radian lost 2.17%, while Ellie Mae closed down 2.05%.