Mortgage Stocks Fall Sharply

Mortgage-related stock prices weakened considerably Thursday morning in the wake of disappointing new-home sales and spreading concerns about credit quality.With the Dow Jones industrial average down 200 points, about 1.45%, at noon, almost all mortgage stocks tracked by MortgageWire had declined by even higher percentages. The biggest declines were seen among subprime firms and some mortgage insurers. American Home Mortgage Holdings was down $0.59, or 5%, at noon, and Franklin Bank Corp. was down $0.77, or 6%. Mortgage insurer Radian was down $3.03, nearly 7%, while PMI was down $2.56, just over 6%, and MGIC was down $2.48, about 5%.