Reduced Investor Concern Over Fed Doesn't Help Mortgage Stocks

Even though the Dow Jones Industrial Average and the S&P 500 both hit new highs on Tuesday based largely on comments that indicate the Federal Reserve will not scale back or exit its bond purchase program, the Mortgage Industry Equity Composite saw just seven stocks close higher and 10 lower.

The MIEC showing is a slight surprise given that the Fed program is what has kept mortgage interest rates low.

Once again, the private mortgage insurers MGIC Investment Corp. and Radian Group were the top performers, gaining 2.6% and 0.81% over their Monday close. They were joined by Astoria Financial, up 0.68%.

PennyMac lost 1.99%, followed by KB Home, down 1.21%, and PHH, down 1.19%.

Non-MIEC members Fannie Mae and Freddie Mac continued to rise, gaining 11.04% and 9.49% respectively.

Fannie Mae, which closed on Feb. 14 at $0.29 a share, on Tuesday closed at $1.71 per share. Freddie Mac, also at $0.29 per share on Feb. 14, closed at $1.50 per share.