Stocks

Fannie Mae and Freddie Mac shares soared Friday amid fresh reports that the Trump administration is working on proposal that would recommend freeing the mortgage-finance giants from government control.

Ditech Holding Corp. fired its chief operating officer after nine months, and entered into a forbearance agreement for a debt payment that was due in December, it said in a regulatory filing.

MGIC Investment Corp. responded to the broad-based roll out of "black box" pricing engines from the other mortgage insurers by bringing its version to market.

Bank of America's first-mortgage production dropped almost 26% year-over-year in the fourth quarter of 2018, but it experienced a less severe 10% decline in home equity lending during the same period.

Wells Fargo and JPMorgan Chase had reduced mortgage-related earnings in the fourth quarter as home loan activity continues to fall short of expectations.

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.