Some of the nation's mega banks closed out Tuesday trading in positive territory, despite lingering concerns over interest rate volatility and a possible military strike in Syria. Concerns over Syria subsided somewhat during the day, allowing the market to breath.
When looking at HousingWire's exclusive mortgage finance-real estate stock index, the HW 30, mega banks performed well overall.
Bank of America (BAC) ended Tuesday up 0.92%, while JPMorgan Chase (JPM) was up 1.19% by day's end. The other big bank on the HW 30, Wells Fargo (WFC), finished Tuesday up 0.75%.
The big banks’ success on Tuesday leads to the question of why. An article on fool.com released a common theory. Generally, banks benefit from rising mortgage rates since they are able to charge more for loans and add little to the total for their deposit. Obviously, some banks are in a better position to benefit from the increase in interest rates than others.
Stocks on the servicing side, such as Nationstar (NSM) and Ocwen (OCN), also saw strong improvement Tuesday. Nationstar ended the day up 1.39%, while Ocwen was up a whopping 3.73% at the end of the day.
It seems the HW 30, which ended the day up 0.58% overall, wasn’t the only stock market that had a successful day. The Dow Jones was up 0.16%, the Nasdaq was up 0.64% and the S&P 500 finished the day up 0.42%.
