Fixed income

Citigroup's residential mortgage originations declined 23% and its home-loan revenue dropped by 35% year-over-year in the fourth quarter of 2018, as the company continued to distance itself from home loans.

Lennar Corp., the first big homebuilder to report in this earnings cycle, surged after its chairman said buyer traffic improved in December as mortgage rates declined.

Older millennials and younger Generation Xers still feel the aftershock of the housing crisis, as more would rather invest in the stock market than real estate, according to Redfin.

Manhattan home prices fell in the fourth quarter, with the median slipping to less than $1 million for the first time in three years, as ample inventory continued to allow buyers to demand sweeter deals.

Rising mortgage rates are helping decelerate home price growth, which is expected to slow further during the coming year, according to CoreLogic. Consumer uncertainty in the economy due to stock market declines may also weaken house values.

D.R. Horton Inc. is planning to buy Terramor Homes' building operations for $60 million in cash, expanding the potential customer base for the larger company's in-house lending unit.

Ditech Holding Corp. is proposing to pay $257,000 and improve governance to settle a stockholder lawsuit alleging that a lack of oversight allowed improprieties to occur in several mortgage-related business lines.

New Penn Financial will change its name to NewRez at the start of 2019, reflecting its acquisition earlier this year by New Residential Investment Corp.

Consolidation is coming in the mortgage industry, but a protracted timetable will continue to constrict industry profits.

Toll Brothers Inc. reported its first drop in orders since 2014, led by a big falloff in California demand, a sign that high-end property markets are cooling. Shares slumped.