Housing Data Hurts Mortgage Stock

\r\nMost mortgage lenders experienced a dip in their stock worth this week after a real estate organization reported that housing prices are coming down and existing home sales are sagging. Wednesday showed the release of the National Association of Realtors report that, compared to July of last year, home sales and values were markedly less; houses are also sitting on the market longer while the market is flooded with new properties for sale.\r\n

Though most mortgage professionals are aware that the mortgage industry is not what it was last year, the report has hurt market shares this week as investors flee from mortgage stock. Some investors see the current trend as a situation where bad credit will reign, leading to more defaults on mortgages and lowering the value of mortgage lender stock. Most large mortgage lenders were hit with declining stocks value this week, and include Countrywide, New Century and American Home Mortgage. Corporations are hoping that as the Fed maintains current rates, the market will strengthen and stocks will rebound.\r\n