Mortgage Stocks Start Week Strong

The stock market rallied on Monday, as the Dow Jones Industrial Average gained almost 141 points and closed above 15,000. That optimism spread to real estate finance-related stocks as 14 of the 17 Mortgage Industry Equity Composite members closed above their Friday close.

Leading the way is KB Home, up a gigantic 5.3%, as competitor Hovnanian Enterprises reported double-digit revenue growth for the quarter ended July 31.

Next is Redwood Trust, up 2.69%, Ellie Mae, up 1.72%, and Radian Group, up 1.71%. Radian reported a decline in its delinquent loan inventory driven by the Freddie Mac agreement; it also had more cures than new notices of delinquency.

The three MIEC stocks which closed lower were PHH, down 1.4%, Hudson City Bancorp, down 1.08%, and OceanFirst Financial, down 0.12%.