Coordinated Central Bank actions aimed at easing European financial concerns gave most industry stocks a lift Wednesday morning as the Dow rose more than 400 points.
Mortgage-related stock gains tracked by Yahoo Finance at around noon ranged from about 1%-2% to as much as 7% or more. For example, builder KB Home was at the high end of that range at that time while real estate investment trust Penny Mac was at the low end of that range.
Also the rate-indicative 10-year Treasury yield, which had ended Tuesday just below 2%, climbed almost to 2.1% at one point Wednesday morning. But it had receded a bit and was closer to 2.05% by mid-day.
In other bond market news Wednesday morning, Fitch followed through with previously reported plans to change the rating outlook on what it said was a relatively small amount of U.S. credit-linked residential mortgage-backed securities to negative.
It officially changed the outlook on 42 U.S. RMBS classes due to a previous reported rating linkage to the U.S. sovereign rating, which Fitch changed to a negative outlook recently.
