Mortgage Stocks Tick Up As Freddie Mac Is Allowed To Buy Second Mortgages
Portfolio Pulse from Michael Juliano
Shares of U.S.-listed mortgage lenders have risen after U.S. regulators allowed Freddie Mac to buy second mortgages, potentially lowering borrowing costs against home equity. The Federal Housing Finance Authority (FHFA) approved a pilot program for Freddie Mac to buy up to $2.5 billion of second mortgages over 18 months.
June 24, 2024 | 11:06 pm
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Bank of America improved 1.38% following the news that Freddie Mac can buy second mortgages, which could lower borrowing costs and benefit large financial institutions.
The regulatory change allowing Freddie Mac to buy second mortgages could lower borrowing costs, benefiting large financial institutions like Bank of America.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Discover Financial Services ticked up 0.55% as Freddie Mac's approval to buy second mortgages could lower borrowing costs, indirectly benefiting financial services companies.
The regulatory change allowing Freddie Mac to buy second mortgages could lower borrowing costs, indirectly benefiting financial services companies like Discover Financial Services.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
PennyMac Financial Services, Inc. picked up 0.76% as Freddie Mac's approval to buy second mortgages could lower borrowing costs, benefiting mortgage lenders.
The approval for Freddie Mac to buy second mortgages is likely to lower borrowing costs, which is beneficial for mortgage lenders like PennyMac Financial Services, Inc.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
UWM Holdings Corp. gained 1.15% as Freddie Mac's approval to buy second mortgages could lower borrowing costs, benefiting mortgage lenders.
The approval for Freddie Mac to buy second mortgages is likely to lower borrowing costs, which is beneficial for mortgage lenders like UWM Holdings Corp.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80