Homebuilder and mREIT stocks nosedive
The overall HW 30 index declined a bit during trading
Upon news that the Federal Reserve plans to continue its current pace of mortgage-backed securities purchases, homebuilder stocks on the HW 30 index spiked to their highest levels in two months.
But much to the shock of Wall Street junkies and analysts, homebuilder stocks went the other direction Thursday, falling substantially after a rise just one day before.
On the HW 30 index, homebuilder D.R. Horton (DHI) fell 1.50% for the day. The stock opened at $21.45 and ended the day at $21.01 per share. Interestingly enough, the homebuilder was named one of the top 5 ‘no taper’ breakout stocks to buy by InvestorPlace.
Lennar Corp. (LEN) fell 2.84% on Thursday, starting the day at $37.62 and ending it at $36.27 per share. Over the past month, Lennar's stock grew nearly 12%.
The homebuilder Toll Brothers (TOL) ended the day down 2.17%. The stock started the day at $34.72 and fell to $33.84 by day's end.
But homebuilders weren’t the only ones to take a nosedive after a very successful day Wednesday. mREIT American Capital Agency (AGNC) — which ended Wednesday up 5.30% — fell 2.66% from the start of trading on Thursday. Additionally, Annaly Capital Management (NLY), another mREIT, fell 2.31% after improving 4.94% the day before.
Two Harbors Investment (TWO) was down 1.37% at the end of the day on Thursday. Just a day earlier, the same mREIT had improved 4.29%.
The only mREIT to fare well Thursday was Redwood Trust (RWT), which was up a slight 0.10% for the day.
The HW 30 index as a whole fell 0.38% on Thursday.