Mortgage stocks on Tuesday posted gains as the Dow Jones Industrial Average rose almost 300 points, and the yield on the rate-indicative 10-year Treasury rebounded.
But for companies like Penny Mac and Radian the percentage gains were relatively modest. Penny Mac, a REIT that invests in nonperforming loans but also originates, saw its share price rise by 1%, while Radian's stock rose 3%.
However, mortgage bellwether PHH Group fell 3%.
Meanwhile, home builder KB Home spiked 7%, and a handful of mortgage-related stocks posted double-digit percentage gains, partly because their share prices were so low that any increase was magnified.
In general, gains experienced by companies in the National Mortgage News Industry Equity Composite were in the range of 2% to 5%.
As of Tuesday afternoon the yield on the 10-year Treasury was nearing 1.9%, compared to 1.8% the past few days.
