Mortgage firms slide on hawkish Fed, inflation expectations

Mr Cooper

16/06/2022 16:11

** Shares of mortgage originators and lenders slide on Thurs
after the Fed hiked rates by 75 basis points as U.S. faces the
highest inflation since the early 1980s
    ** Rocket Companies  RKT.N  shares down 6.7%, hit fresh
record low on the session
    ** UWM Holdings Corp  UWMC.N  down 4.7%, loanDepot Inc
 LDI.N  off 6.9%, and NMI Holdings Inc  NMIH.O  declines 6.5%
    ** Mr. Cooper Group  COOP.O  loses 4.9%, while PennyMac
Financial Services  PFSI.N  drops 4.5%
    ** The Fed's largest rate hike since 1994 and hawkish
commitment to control inflation has touched off broad tightening
of credit conditions being felt in housing markets  urn:newsml:reuters.com:*:nL1N2Y115K
    ** This as Freddie Mac on Thurs said U.S. 30-year fixed-rate
mortgage averaged 5.78% as of June 16, up from 5.23% it averaged
in week prior, the largest one-week increase in its survey in 35
yrs  urn:newsml:reuters.com:*:nGNXb96spw
    ** Rising interest rates crimp origination and refinancing
volumes, and dent profitability of mortgage cos
    ** Meanwhile, S&P 500  .SPX  tumbles 3.4% on Thurs as
recession fears mount  .N 

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))