Wedbush says these housing stocks can benefit from rising interest rates

seekingalpha04-17

Mortgage servicing companies will be served well by rising interest rates, highlighted by the benchmark 10-year Treasury yield pushing above 4.5%, says Wedbush Securities. The 10-year yield (US10Y) ...

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The 10-year yield (US10Y) ...</p>\n\n<a href=\"https://seekingalpha.com/news/4090209-theres-one-group-of-housing-stocks-that-will-benefit-rising-interest-rates-wedbush-says\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wedbush says these housing stocks can benefit from rising interest rates</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWedbush says these housing stocks can benefit from rising interest rates\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-17 17:57 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4090209-theres-one-group-of-housing-stocks-that-will-benefit-rising-interest-rates-wedbush-says><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Mortgage servicing companies will be served well by rising interest rates, highlighted by the benchmark 10-year Treasury yield pushing above 4.5%, says Wedbush Securities.  The 10-year yield (US10Y) ...</p>\n\n<a href=\"https://seekingalpha.com/news/4090209-theres-one-group-of-housing-stocks-that-will-benefit-rising-interest-rates-wedbush-says\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RKT","symbol_name":"Rocket Companies","start_time":0,"source_url":"https://seekingalpha.com/news/4090209-theres-one-group-of-housing-stocks-that-will-benefit-rising-interest-rates-wedbush-says","article_id":"2428139778","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1497209456/image_1497209456.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2428139778","pubTimestamp":1713347856,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Mortgage servicing companies will be served well by rising interest rates, highlighted by the benchmark 10-year Treasury yield pushing above 4.5%, says Wedbush Securities.  The 10-year yield (US10Y) p","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"RKT":"Rocket Companies","COOP":"Mr. Cooper Group Inc.","RWT":"Redwood Trust Inc","BK7504":"锂钴概念","WD":"Walker & Dunlop","UWMC":"UWM Holdings Corporation","BK4547":"WSB热门概念","BK7084":"电子设备和仪器","BK4229":"商业和住宅抵押贷款融资","ABR":"阿伯房地产信托","RKT.AU":"Rocketdna Ltd","ABR.AU":"American Pacific Borate Lithium","BK4195":"互助储蓄与抵押信贷金融服务","GHLD":"Guild Holdings Company","BK4110":"抵押房地产投资信托","RITM":"Rithm Capital","BK7095":"多种金属与采矿","PFSI":"PennyMac Financial Services, Inc."},"translate_title":"Wedbush说，这些住房存量可以从利率上升中受益","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ABR.AU":1,"WD":1,"UWMC":1,"RWT":1,"RKT.AU":1,"RKT":1,"RITM":1,"PFSI":1,"GHLD":1,"ABR":1,"COOP":1,"US6M.BOND":0.9,"US7Y.BOND":0.9,"US5Y.BOND":0.9,"US3Y.BOND":0.9,"US30Y.BOND":0.9,"US2Y.BOND":0.9,"US10Y.BOND":0.9,"US12M.BOND":0.9,"US912797HH31.BOND":0.6,"US912797HG57.BOND":0.6,"US912797HE00.BOND":0.6,"US912797GW17.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GB79.BOND":0.6,"US912797FS14.BOND":0.6,"US912797FH58.BOND":0.6,"US912796CX52.BOND":0.6},"content_text":"Mortgage servicing companies will be served well by rising interest rates, highlighted by the benchmark 10-year Treasury yield pushing above 4.5%, says Wedbush Securities.  The 10-year yield (US10Y) pierced 4.7% for the first time since early November on Tuesday, with hotter-than-expected inflation and other US economic data prompting a dash out of bonds by dented rate-cut expectations.  Mortgage servicing is the one group in the housing-finance space that will benefit from a higher-for-longer rate environment, Wedbush said. The group includes Mr. Cooper Group (COOP), PennyMac Financial Services (PFSI), and Rithm Capital (RITM).  “In addition to the positive impact on [Mortgage Servicing Rights] values from higher rates, lower refinance levels open the doors to lower MSR amortization costs and higher overall operating margins,” the firm wrote.  A yield below 4.5% for the 10-year Treasury would allow most companies under Wedbush’s housing and housing-finance coverage to operate with an “acceptable (though less than stellar)\" level of origination volumes, gain margins, and operating margins.  But with the 10-year above 4.5% and no signs of easing in rate volatility, the firm now foresees incremental pressure on single and multifamily origination volumes, and incremental stress on multifamily credit metrics. For originators, including Guild Holdings (GHLD), Rocket Companies (RKT) and UWM Holdings (UWMC), climbing rates will likely slow the purchase market and “kill any emerging signs of life in the refi market,” which could lead to a lower gain on sale margins.  Mortgage application volume indicated a 10% decline in the first quarter of 2024 from the same period in 2023, as tracked by weekly MBA indices, Wedbush said. Such a drop is driven largely by a roughly 15% fall in purchase activity year over year, the firm said.  It also pointed out its recent downgrade of Arbor Realty Trust (ABR), Walker & Dunlop (WD), and Redwood Trust (RWT) to Neutral from Outperform, citing its concerns a higher-for-longer rate landscape may have an “incremental negative impact” on multifamily bridge lending credit metrics, agency transaction volumes, and single-family jumbo market origination volumes.   More on United States 10-Year Bond Yield  Wall Street Lunch: Bond Bulls In Hibernation Dollar Consolidates But Adjustment Is Not Over Wall Street Lunch: So Long Summer Of Rate Cuts U.S. 10-year yield tops 4.7% as yields continue to push higher Treasury yields continue to jump as the 2Y tops 5% and the 10Y hits a 5-month high","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2428139778"}