Mortgage Stocks Help Lead Rally

Mortgage industry stocks rose sharply on Thursday, helping boost a broad market rally as credit worries receded somewhat from investors' minds. All 15 industry stocks tracked by MortgageWire increased on the day, with most rising by a substantially higher percentage than the 1.67% (207-point) increase in the Dow Jones Industrial Average. Leaders included Franklin Bancorp, up 21% to close at $5.88, and LandAmerica Financial, up 15% to close at $52.20. Countrywide closed up nearly 8% at $6.96, putting its shares near the deal price negotiated in a proposed takeover by Bank of America. Fannie Mae and Freddie Mac also saw their shares rise nearly 9%.