Mortgage Stocks Dive Again
Friday, July 11th, 2008Financial stocks, especially those tied to the mortgage industry, helped fuel a 237-point drop in the Dow Jones industrial average on Wednesday.
Freddie Mac’s shares plunged by $3.20, or 24%, on the day, closing at a new 52-week low of $10.26.
Fannie Mae’s shares fell $2.31, or 13%, to close at $15.31.
Bank of America, which recently closed on its acquisition of Countrywide Financial, saw its shares fall $1.48, or 6%, to close at $22.06.
Radian Guaranty’s shares fell by 18 cents, or 11%, to close at $1.53.
Analysts attributed Wednesday’s broad market decline to concern about a slowing economy, more bad debt at banks, and higher oil and commodity prices.