Mortgage Stocks Rebound in Rally

With the Dow Jones industrial average up 331 points, or 2.5%, industry stocks also showed strong gains on Wednesday amid heightened expectations for an additional Federal Reserve board rate cut.Thirteen of 16 mortgage-related stocks tracked by MortgageWire ended the day higher, with Freddie Mac and Fannie Mae showing the strongest gains. The market reacted positively to Freddie Mac's plan to raise additional capital through a preferred stock issuance, sending the company's share prices up 14% to close at $29.42. Fannie Mae was up 10% to close at $32.30. But concern about credit woes for lenders persisted, with Countrywide Financial closing down 3% at $8.72 and IndyMac's share price falling 1% to close at $7.70.