Federal Home Loan 株価情報 (OTC: FMCC)

最新ニュース Federal Home Loan (OTC:FMCC) 株価情報

FREDDIE MAC

Federal Home Loan Mortgage Corp is a US based government-sponsored enterprise. The company invests in mortgage loans and mortgage-related securities. It operates in the following segments: Single-family, Multifamily. Its Single-family segment provides liquidity and support to the single-family mortgage market through a variety of activities that include the purchase, securitization, and guarantee of single-family loans originated by lenders. The company purchases multifamily loans for aggregation and then securitization through the issuance of multifamily K Certificates as well as issues and guarantees other securitization products. Majority of the revenue is earned from single family segment.

Federal Home Loan Mortgage Corp

Benzinga examined the prospects for<a href="http://www.benzinga.com/trading-ideas"> many investors&#8217; favorite stocks</a> over the last week — here&#8217;s a look at some of our top stories.
The Nasdaq and S&amp;P 500 ended a five-day losing streak on Friday, but the week closed with the S&amp;P down 0.48%, the Dow losing 0.60%, and the Nasdaq dropping 0.51%.
Rising Treasury yields, including a 30-year high of 4.8%, raised borrowing cost concerns and drove record December outflows from the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>), as markets carried weak momentum <a href="https://www.benzinga.com/government/regulations/25/01/42796485/goodbye-santa-rally-tesla-falters-on-deliveries-investors-flee-bonds-ahead-of-trumps-second-term-this-week-in-the-market">into the new year.</a>
Meanwhile, the U.S. manufacturing sector showed signs of stabilization in December, with the ISM Manufacturing PMI climbing to 49.3%, its highest since April 2024, though still marking the <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42790042/us-manufacturing-activity-tops-expectations-in-december-rises-to-9-month-highs">ninth consecutive month of contraction.</a>
Benzinga provides daily reports on the stocks most popular with investors. Here are a few of this past week&#8217;s most bullish and bearish posts that are worth another look.
<h3 class="wp-block-heading">The Bulls</h3>
&#8220;<a href="https://www.benzinga.com/24/12/42751367/netflix-posts-record-debut-with-squid-game-season-2-heres-how-many-people-watched-show">Netflix Posts Record Debut With &#8216;Squid Game&#8217; Season 2: Here&#8217;s How Many People Watched Show</a>,&#8221; by <a href="https://www.benzinga.com/author/chris-katje">Chris Katje</a>, highlights Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) achieving 68 million views for &#8220;Squid Game&#8221; Season 2 in its first week, setting a company record, alongside NFL Christmas Day games driving additional subscriber engagement.
&#8220;<a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42758813/shytoshi-kusama-clears-the-air-on-shiba-inu-role-memecoin-rivalry-our-drive-was-to-overtake-dogecoin">Shytoshi Kusama Clears The Air On Shiba Inu Role, Memecoin Rivalry: &#8216;Our Drive Was To Overtake Dogecoin&#8217;</a>,&#8221; by <a href="https://www.benzinga.com/author/aniket-verma">Aniket Verma</a>, features Shytoshi Kusama clarifying that Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>) was founded by Ryoshi, not him, and sharing the project's early vision to surpass Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>).
&#8220;<a href="https://www.benzinga.com/general/social-media/24/12/42734220/bill-ackman-sends-fannie-mae-freddie-mac-stocks-soaring-trump-likes-big-deals">Bill Ackman Sends Fannie Mae, Freddie Mac Stocks Soaring: &#8216;Trump Likes Big Deals&#8217;</a>,&#8221; by <a href="https://www.benzinga.com/author/erica-kollmann">Erica Kollmann</a>, discusses Bill Ackman's bullish view on Fannie Mae (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FNMA#OTC">FNMA</a>) and Freddie Mac (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FMCC#OTC">FMCC</a>) stocks, citing their potential for large gains as conservatorship could end under Donald Trump's administration, with Ackman highlighting asymmetric upside for investors.
For additional bullish calls of the past week, check out the following:
<a href="https://www.benzinga.com/media/24/12/42709387/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet">Benzinga&#8217;s &#8216;Stock Whisper&#8217; Index: 5 Stocks Investors Secretly Monitor But Don&#8217;t Talk About Yet</a>
<a href="https://www.benzinga.com/news/econ-s/25/01/42769181/natural-gas-prices-surge-as-arctic-blast-freezes-us-3-stocks-on-the-move">Natural Gas Prices Surge As Arctic Blast Freezes US: 3 Stocks On The Move</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42777529/goldman-sachs-adds-3-stocks-to-conviction-list-flags-5-market-trends-to-monitor-in-2025">Goldman Sachs Adds 3 Stocks To &#8216;Conviction List,&#8217; Flags 5 Market Trends To Monitor In 2025</a>
The Bears
&#8220;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42777950/teslas-first-sales-drop-splits-wall-street-2025-will-be-the-prove-it-year">Tesla&#8217;s First Sales Drop Splits Wall Street: &#8216;2025 Will Be The Prove It Year&#8217;</a>,&#8221; by <a href="https://www.benzinga.com/author/chris-katje">Chris Katje</a>, highlights Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) facing mixed analyst reactions after missing Q4 delivery estimates, with Wedbush's Daniel Ives forecasting a 20%-30% growth rebound in 2025, while Ross Gerber criticized reliance on discounts to boost sales.
&#8220;<a href="https://www.benzinga.com/24/12/42735744/pharma-bro-martin-shkreli-predicts-doom-for-michael-saylors-microstrategy-as-stock-dips-below-300-in-after-hours-trading">Pharma Bro Martin Shkreli Predicts Liquidation Doom For MicroStrategy Amid Fall Below $300, Says Bitcoin Will Hit $250K Without Michael Saylor</a>,&#8221; by <a href="https://www.benzinga.com/author/aniket-verma">Aniket Verma</a>, features Martin Shkreli's warning of potential liquidation for MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) as its stock fell below $300, predicting Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) could hit $250,000 without the influence of its co-founder Michael Saylor.
&#8220;<a href="https://www.benzinga.com/tech/24/12/42699274/boeing-engineers-leave-struggling-planemaker-for-space-companies-report">Boeing Engineers Leave Struggling Planemaker For Space Companies: Report</a>,&#8221; by <a href="https://www.benzinga.com/author/anan-ashraf">Anan Ashraf</a>, highlights talent migration from Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) to firms like SpaceX and Blue Origin as engineer tenures drop, potentially delaying new aircraft development, though Boeing says its voluntary attrition rate remains low with competitive pay and benefits.
For more bearish takes, be sure to see these posts:
<a href="https://www.benzinga.com/news/global/25/01/42790373/apple-iphones-lose-ground-in-china-as-subsidies-boost-huawei-domestic-rivals">Apple iPhones Lose Ground In China As Subsidies Boost Huawei, Domestic Rivals</a>
<a href="https://www.benzinga.com/general/travel/25/01/42791291/jetblue-fined-2-million-for-chronic-flight-delays-delta-united-rank-among-most-on-time-airlines">JetBlue Fined $2 Million For &#8216;Chronic Flight Delays&#8217;: Delta, United Rank Among Most On-Time Airlines</a>
<a href="https://www.benzinga.com/trading-ideas/short-ideas/22/10/29205954/paul-tudor-jones-correctly-predicted-the-1987-stock-market-crash-heres-what-the-billion">Paul Tudor Jones Correctly Predicted The 1987 Stock Market Crash: Here&#8217;s What The Billionaire Hedge Fund Manager Says Is Coming Next</a>
Keep up with all the latest breaking news and trading ideas by following<a href="https://twitter.com/Benzinga"> Benzinga</a><a href="http://twitter.com/Benzinga"> on Twitter</a>.
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FMCC

FNMA

MSTR

NFLX

iShares Trust Barclays 20+ Year Treasury Bond Fund

TSLA

Benzinga Bulls And Bears: Tesla, Netflix, MicroStrategy — And Shiba Inu Strives To Outpace Dogecoin In Crypto

Fannie Mae (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FNMA#OTC">FNMA</a>) and Freddie Mac (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FMCC#OTC">FMCC</a>) shares soared on Monday afternoon after billionaire investor Bill Ackman touted the<a href="https://www.benzinga.com/markets/24/12/42635629/bill-ackmans-advice-stay-away-from-shorting-stocks-avoid-commodity-sensitive-industries-and-you-do-great"> stocks on social media. </a>
The Details: Ackman, CEO of Pershing Square hedge fund, recommended the stocks as an investment with "large asymmetric upside versus downside" in <a href="https://x.com/BillAckman/status/1873818034428694837">a post</a> on the social media platform X.&nbsp;
Ackman said he sees the potential for Fannie Mae and Freddie Mac to come out of conservatorship in the next two years. Ackman pointed to the incoming Trump administration as a factor making the end of conservatorship more likely for the home lenders. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I am often asked for stock recommendations, but generally don't share individual names unless I believe the risk versus the reward is extraordinarily compelling. As we look toward 2025, one investment in our portfolio stands out for large asymmetric upside versus downside so I…
&mdash; Bill Ackman (@BillAckman) <a href="https://twitter.com/BillAckman/status/1873818034428694837?ref_src=twsrc%5Etfw">December 30, 2024</a></blockquote>
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Fannie Mae and Freddie Mac were placed under conservatorship in September 2008 in response to the deterioration of the housing market during the 2008 financial crisis. The Federal Housing Finance Agency became the conservator to preserve and conserve the assets and to provide stability to the housing and mortgage markets.&nbsp;
Read Next: <a href="https://www.benzinga.com/24/12/42700819/investors-bet-on-milei-the-argentina-trade">Milei&#8217;s Economic Chainsaw Slashes Inflation As Argentine Stocks Explode 175%</a>&nbsp;
Ackman said that the companies have built $168 billion of capital since 2019 and described this as a "fortress-level of capital for guarantors of fixed-rate, first mortgages to creditworthy, middle class borrowers."&nbsp;
Ackman said he estimates the value of each company at approximately $34 per share, assuming the companies could IPO in the fourth quarter of 2026. He added that he sees the IPOs priced at approximately $31 per share accounting for a 10% discount to their value.&nbsp;&nbsp;
He also pointed to the benefits of ending the conservatorship for the federal government including the removal of approximately $8 trillion in liabilities and the potential to generate more than $300 billion in profits. 
"Trump likes big deals and this would be the biggest deal in history. I am confident he will get it done," Ackman wrote.&nbsp;
FNMA, FMCC Price Action: Fannie Mae shares ended Monday&#8217;s session up 36.14% at $3.39 and Freddie Mac shares closed 33.87% higher at $3.32.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/legal/24/12/42687945/zelle-became-a-gold-mine-for-fraudsters-consumer-financial-protection-bureau-lawsuit">&nbsp;&#8216;Zelle Became A Gold Mine For Fraudsters&#8217;: Consumer Financial Protection Bureau Lawsuit</a></li>
</ul>
Photo: Shutterstock

News

Social Media

Movers

General

Bill Ackman Sends Fannie Mae, Freddie Mac Stocks Soaring: 'Trump Likes Big Deals'

WIIM

Freddie Mac shares are trading higher following comments on the stock from Bill Ackman.

<a href="https://x.com/BillAckman/status/1873818034428694837" title="https://x.com/BillAckman/status/1873818034428694837">https://x.com/BillAckman/status/1873818034428694837</a>
<a href="https://x.com/BillAckman/status/1873818034428694837" title="https://x.com/BillAckman/status/1873818034428694837">https://x.com/BillAckman/status/1873818034428694837</a>

Hedge Funds

Watching Fannie Mae Shares As Bill Ackman Mentions Stock On X

Keefe, Bruyette &amp; Woods analyst Bose George downgrades Federal Home Loan (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FMCC#OTC">FMCC</a>) from Outperform to Market Perform and raises the price target from $2.5 to $4.

Downgrades

Price Target

Analyst Ratings

Keefe, Bruyette & Woods Downgrades Federal Home Loan to Market Perform, Raises Price Target to $4

Mortgage rates continue to <a href="https://www.benzinga.com/news/24/09/40921345/mortgage-rates-drop-to-2-year-low-refinancing-hits-fastest-pace-since-2022-rocket-lendingtree-among">fall toward 6%</a> as the housing market absorbs the Federal Reserve&#8217;s 0.5% rate cut on Wednesday, raising demand for refinancing and buying, stated Freddie Mac.
The average rate for a 30-year fixed mortgage fell to 6.09% on Thursday, down from 6.2% a week ago and 7.19% a year earlier, according to Freddie Mac&#8217;s Primary Market Mortgage Survey.
The rate for a 15-year fixed mortgage declined to 5.15%, down from 5.27% a week ago and 6.54% a year earlier.
"Mortgage rates continued declining towards the six percent mark, reviving purchase and refinance demand for many consumers," said Sam Khater, Freddie Mac's chief economist.
Read Also:<a href="https://www.benzinga.com/top-stories/24/09/40923657/single-family-housing-starts-are-up-as-mortgage-rates-decline-fed-eyes-lower-rates"> Single-Family Housing Starts Are Up As Mortgage Rates Decline, Fed Eyes Lower Rates</a>
"While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market. Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but we expect rates to fall further, sparking more housing activity."
Exchange-traded funds that hold mortgage stocks are sensitive to mortgage rates because they primarily invest in mortgage-backed securities (MBS) or mortgage-related assets, which are directly impacted by changes in interest rates.
<ul>
<li>IShares Mortgage Real Estate ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/REM#BATS">REM</a>) rose 0.82%</li>
<li>VanEck Mortgage REIT Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MORT#NYSE">MORT</a>) went up 0.74%</li>
<li>IShares MBS ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBB#NASDAQ">MBB</a>) ticked up 0.06%</li>
</ul>
IShares Mortgage Real Estate ETF holds 15.2% of the REIT, Annaly Capital Management, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NLY#NYSE">NLY</a>), while VanEck Mortgage REIT Income ETF holds 11.1%.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/24/09/40817001/mortgage-rates-fall-to-lowest-level-since-february-2023">Mortgage Rates Fall To Lowest Level Since February 2023</a></li>
</ul>
Photo: Shutterstock

REIT

ETFs

Real Estate

MORT

iShares FTSE NAREIT Mortgage PLUS Capped Index Fund

Mortgage Rates Near 6%, Demand Increases For Refinancing, Purchases

Shares of U.S.-listed mortgage lenders have risen on the heels of U.S. regulators allowing the Federal Home Loan Mortgage Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FMCC#OTC">FMCC</a>), aka Freddie Mac, to <a href="https://www.benzinga.com/real-estate/24/05/38647920/homebuyers-get-mixed-news-from-freddie-mac-and-the-federal-reserve">buy second mortgages</a>, a move that could lower the cost of borrowing against home equity.
The Federal Housing Finance Authority (FHFA) said Freddie Mac could buy up to $2.5 billion of second mortgages over an 18-month trial period, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-06-24/us-approves-freddie-mac-pilot-program-to-buy-second-mortgages?srnd=homepage-americas&amp;sref=TBDibEcD">reported</a>. FHFA will then decide whether the pilot program helps borrowers in rural and underserved communities obtain them, among other criteria.
Freddie Mac proposed backing second mortgages in April after the steep jump in home loan rates over the past two years. When rates were lower, a homeowner who wanted to borrow for renovations might have used a cash-out refinancing that allowed them to take out a new loan bigger than their prior mortgage.
Also Read: <a href="https://www.benzinga.com/top-stories/24/06/39464529/us-needs-1-5-million-more-homes-to-tame-record-prices">US Needs 1.5 Million More Homes To Tame Record Prices</a>
But cash-out refinancings are no longer practical for many borrowers because today&#8217;s higher interest rates would result in bigger, higher-rate loans.
Meanwhile, the steep rise in housing prices since 2020 has led to U.S. households having more than $32 trillion in equity. About $18 trillion of that is possibly available for equity extraction through private channels, according to Bloomberg.
Freddie Mac's proposal to back second mortgages has faced opposition from industry groups and politicians who argue the initiative could boost inflation and crowd out private lending, but other public comments on the proposal said it would help boost the scale of the market for home-equity lending.
Sandra Thompson, FHFA director, said capping the program at $2.5 billion would mitigate the risk of it boosting inflation. She also said requiring Freddie Mac to buy loans of $78,277 or less would ensure that it stays focused on borrowers who may be underserved, such as rural and low-income homeowners, rather than higher-income borrowers who may be better served by private lenders.
Price action: UWM Holdings Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UWMC#NYSE">UWMC</a>) gained 1.15% on Monday, while Bank of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) improved 1.38% and PennyMac Financial Services, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFSI#NYSE">PFSI</a>) picked up 0.76%. Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) ticked up 0.55%.
Read now: <a href="https://www.benzinga.com/real-estate/23/11/36028788/fannie-mae-and-freddie-mac-will-make-home-loans-over-1-million-in-some-regions">Fannie Mae And Freddie Mac Will Make Home Loans Over $1 Million In Some Regions</a>
Photo: Shutterstock

Government

PFSI

UWMC

Mortgage Stocks Tick Up As Freddie Mac Is Allowed To Buy Second Mortgages

Mortgage rates have declined for the<a href="https://www.benzinga.com/real-estate/24/06/39401750/what-the-housing-market-could-look-like-if-donald-trump-wins-the-2024-presidential-election"> third consecutive week </a>following signs of cooling inflation and lower interest rates from the Federal Reserve, according to Freddie Mac (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FMCC#OTC">FMCC</a>).
The 30-year fixed mortgage rate averaged 6.87% as of Thursday, down from last week&#8217;s average of 6.95%. A year ago, the rate registered an average of 6.67%, Freddie Mac&#8217;s Primary Mortgage Survey showed.
The 15-year fixed mortgage rate came in at an average of 6.13%, down from a 6.03% average posted a week earlier. The average rate was 6.03% a year ago.
"Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Fed rate cut," Sam Khater, Freddie Mac's chief economist, said in a statement.
Also Read: <a href="https://www.benzinga.com/top-stories/24/06/39341640/mortgage-rates-fall-for-second-straight-week-in-response-to-positive-economic-data">Mortgage Rates Fall For Second Straight Week In Response to Positive Economic Data</a>
"These lower mortgage rates coupled with the gradually improving housing supply bodes well for the housing market. Aspiring homeowners should remember it's important to shop around for the best mortgage rate as they can vary widely between lenders."
A week ago, the average rate for the 15-year fixed mortgage was 6.95%, down from 6.99% a week earlier, according to the weekly survey. It stood at 6.69% a year earlier.
At that time, the average 30-year fixed mortgage rate was 6.95%, down from 6.99% average seven days ago. A year ago, it averaged 6.69%.
The 15-year rate averaged 6.17%, down from an average of 6.29% a week ago. It stood at an average of 6.1% seven days earlier.
Inflation<a href="https://www.benzinga.com/top-stories/24/06/39391685/fed-members-cool-on-raising-interest-rates-these-conditions-could-take-months-and-more-likely-quarte"> stands at 3.4%,</a> well below the Fed&#8217;s target of 2%, while the Fed rate is between 5.25% and 5.5%.
Now Read: <a href="https://www.benzinga.com/real-estate/24/06/39337282/u-s-home-prices-hit-record-high-as-mortgage-rates-start-to-decline">U.S. Home Prices Hit Record High As Mortgage Rates Start To Decline</a>

Markets

Mortgage Rates Fall For Third Straight Week With Signs Of Lower Inflation, Fed Rates

Mortgage rates dropped for a second consecutive week as <a href="https://www.benzinga.com/markets/equities/24/06/39289912/us-inflation-eases-more-than-expected-in-may-boosts-2024-rate-cut-prospects-ahead-of-wednesdays-">inflation continued to ease</a>.
The average 30-year fixed-rate mortgage was 6.95% for the week ending June 13, according to Freddie Mac&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FMCC#OTC">FMCC</a>) latest Primary Mortgage Market Survey, Fox Business reported.
That is down from an average of 6.99% during the prior week, but up from 6.69% a year ago. 
For a 15-year mortgage, the average rate fell to 6.17% for the past week from 6.29% for the previous week, but modestly from an average rate of 6.10% registered a year earlier.
See Also: <a href="http://Will Mortgage Rates Pop Again? Homebuyers Combat An Affordability Crises">Will Mortgage Rates Pop Again? Homebuyers Combat An Affordability Crises</a>
The lower rates came after a positive inflation report that showed a slight easing in consumer prices. On an annual basis, prices rose 3.3% in May, down from a 3.4% rise in April. On a monthly basis, prices remained unchanged after rising 0.3% the prior month, according to <a href="https://www.foxbusiness.com/personal-finance/mortgage-rates-inflation-federal-reserve">Fox</a> Business.
Inflation continues to moderate towards the <a href="https://www.benzinga.com/markets/bonds/24/06/39317533/bond-etfs-unfazed-by-fed-decision-to-keep-rates-steady">2% target level</a> set by the Federal Reserve, but the central bank still intends to keep interest rates elevated until it is more confident that inflation will keep falling. 
On Wednesday, it announced it would maintain the federal funds rate range at 5.25% to 5.5%, where rates have held steady since last July.&nbsp;
&#8220;Mortgage rates continued to fall back this week as incoming data suggests the economy is cooling to a more sustainable level of growth,&#8221; Freddie Mac&#8217;s Chief Economist Sam Khater told Fox Business.
&#8220;Top-line inflation numbers were flat but shelter inflation, which measures rent and homeownership costs, increased showing that housing affordability continues to be an ongoing impediment for buyers on the house hunt.&#8221;
Now Read: <a href="https://www.benzinga.com/money/types-of-conventional-mortgage-loans">Types of Conventional Mortgage Loans and How They Work</a>
Image: Shutterstock

Economics

Federal Reserve

Mortgage Rates Fall For Second Straight Week In Response to Positive Economic Data

Keefe, Bruyette &amp; Woods analyst Bose George upgrades Federal Home Loan (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FMCC#OTC">FMCC</a>) from Underperform to Market Perform and raises the price target from $1 to $1.25.

Upgrades

Keefe, Bruyette & Woods Upgrades Federal Home Loan to Market Perform, Raises Price Target to $1.25

Questionable stock and options trades over the past several years by members of Congress have led to increased calls from the public and by several members of Congress to ban the buying and selling of stocks and options <a href="https://www.benzinga.com/government/23/07/33288522/paging-nancy-pelosi-ban-on-congressional-trading-could-be-coming">by elected officials.</a>
A new disclosure of a profit from a penny stock by a congressman might not sit well with the public.
What Happened: Rep. Kevin Hern (R-OK) was one of several members of the U.S. House of Representatives who were <a href="https://www.benzinga.com/government/23/10/35092315/who-will-be-the-next-speaker-of-the-house-heres-the-betting-odds-for-scalise-boebert-gaetz-taylor-gr">nominated or interested in</a> the Speaker of the House position after Kevin McCarthy was voted out of the role.
Hern was elected to the House in 2018 and served since then. The congressman has been a vocal supporter of former President Donald Trump and was one of the Republicans who attempted to overthrow the 2020 presidential election results.
The Oklahoma Republican representative is also an active stock trader, which may come from his business background. Hern has been the owner of several businesses and is <a href="https://tulsaworld.com/news/state-and-regional/govt-and-politics/first-district-congressman-kevin-hern-gets-out-of-the-hamburger-business/article_560cc79e-b3fa-11eb-a60a-2f184819cb03.html">a former franchisee </a>of McDonald's restaurants. A local paper once called Hern the McCongressman before he sold all of the McDonald's franchised restaurants he owned.
A recent stock transaction by Hern could draw attention — and it wasn't of McDonald's.
Data from Quiver Quant shows that Hern recently <a href="https://www.quiverquant.com/congresstrading/trade/House-H001082-744">sold </a>shares of mortgage company Freddie Mac (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FMCC#OTC">FMCC</a>).
The disclosure shows Hern sold $100,000 to $250,000 worth of Freddie Mac shares on Nov. 6. Data showed Freddie Mac shares trading between 64 cents and 67 cents on the day of the sale.
Data from Quiver Quant showed Hern <a href="https://www.quiverquant.com/congresstrading/trade/House-H001082-611">bought </a>$100,000 to $250,000 worth of Freddie Mac shares earlier this year on Jan. 30, in a trade that was disclosed publicly on Feb. 14. Shares of Freddie Mac traded between 45 cents and 47 cents on the day of the purchase.
Based on the prices at the time of the two transactions, Hern profited 42.2% to 48.9% on the trade.
Related Link: <a href="https://www.benzinga.com/government/23/01/30260466/10-best-stock-traders-in-congress-in-2022-spoiler-nancy-pelosi-isnt-no-1">The 10 Best Stock Traders In Congress In 2022 </a>
Why It's Important: Hern is allowed to buy and sell stocks and options as a member of Congress as long as he publicly discloses the transactions in a timely fashion.
Hern previously violated the STOCK Act failing to disclose transactions he <a href="https://www.axios.com/2022/02/10/top-stock-trade-house-members-congress">made </a>in 2021.
While most members of Congress buy and sell stocks and options of large companies, Hern's latest transaction involves a well-known company, but one that trades off of the major exchanges and trades for less than $1.
Freddie Mac, also known as Federal Home Loan Mortgage Company, along with Fannie Mae was <a href="https://www.benzinga.com/general/education/14/10/4908268/financial-crisis-bailouts-what-did-they-actually-cost-taxpayers-1">put under the conservatorship</a> of the Federal Housing Finance Agency in 2008 as part of a rescue plan from the 2008 financial crisis.
Hern is a member of the House Committee on Ways and Means, which is the chief tax-writing committee of the House of Representatives.
While it is unknown if Hern had a reason for selling the shares, the transaction of an over-the-counter penny stock by a member of Congress could escalate talks to ban elected officials from buying and selling stocks and options.
Read Next: EXCLUSIVE: Austin Scott Got &#8216;Ratioed&#8217; On X, Loses Speaker Of The House Nomination, How Stock Trading Factored In
Photo: Shutterstock

Politics

Congressman Buys, Sells Penny Stock For Profit: Here's The Trade And For How Much

<a href="https://www.benzinga.com/news/23/10/35017658/downsizing-homeowners-hit-the-jackpot-amid-skyrocketing-property-values">As the housing market in the U.S. continues its remarkable ascent</a>, the landscape of home buying is seeing a significant shift in down payment trends.&nbsp;
What Happened:&nbsp;According to a <a href="https://www.realtor.com/news/trends/winning-the-bid-the-cities-where-homebuyers-are-making-the-largest-and-smallest-down-payments/">study </a>by Realtor.com,&nbsp;the overall percentage of down payments decreased in 2023 compared to the previous year.
However, particular areas, especially in California, are witnessing homebuyers making substantial down payments, often surpassing the $100,000 mark.
Analysis of data from the top 150 real estate markets up to September 2023 by Realtor.com shows that the average down payment was 13.8% of the home&#39;s price, slightly lower than 14.7% in the same period in 2022.
This suggests a growing challenge in meeting the 20% down payment, commonly seen as a benchmark to avoid private <a href="https://www.benzinga.com/money/mortgage-lenders-no-tax-returns/">mortgage</a> insurance (PMI).
According to the <a href="https://myhome.freddiemac.com/blog/homeownership/20190913-private-mortgage-insurance">report </a>by&nbsp;Freddie Mac (OTC: <a class="ticker" href="https://www.benzinga.com/stock/fmcc#OTC">FMCC</a>),&nbsp;typically PMI expenses amount to approximately $30 to $70 per month for every $100,000 borrowed.&nbsp;
In examining the top 15 priciest markets, it&#39;s evident that California cities are at the forefront with the highest median down payments.
Also Read:&nbsp;<a href="https://www.benzinga.com/news/23/05/32254077/a-family-left-the-u-s-and-bought-a-400-year-old-apartment-in-portugal-for-just-534-000" target="_blank">A Family Left The U.S. And Bought A 400-Year-Old Apartment In Portugal For Just $534,000</a>
Here are 15 real estate markets determined by the median cost of a standard down payment on a home. Although the national average for down payments is 13.8% of the home price, these figures will differ in each market.
<ol>
<li>1. San Jose-Sunnyvale-Santa Clara, California:&nbsp;$235,183</li>
<li>2. San Francisco-Oakland-Berkeley, California:&nbsp;$202,575</li>
<li>3. Santa Maria-Santa Barbara, California:&nbsp;$160,750</li>
<li>4. Los Angeles-Long Beach-Anaheim, California:&nbsp;$152,275</li>
<li>5. Santa Rosa-Petaluma, California:&nbsp;$147,550</li>
<li>6. Oxnard-Thousand Oaks-Ventura, California:&nbsp;$142,800</li>
<li>7. Seattle-Tacoma-Bellevue, Washington:&nbsp;$123,630</li>
<li>8. San Diego-Chula Vista-Carlsbad, California:&nbsp;$119,917</li>
<li>9. Boston-Cambridge-Newton, Massachusetts-New Hampshire:&nbsp;$108,658</li>
<li>10. Fort Collins, Colorado:&nbsp;$105,533</li>
<li>11. Sacramento-Roseville-Folsom, California:&nbsp;$104,159</li>
<li>12. Naples-Marco Island, Florida:&nbsp;$98,357</li>
<li>13. New York-Newark-Jersey City,&nbsp;New York-New Jersey-Pennsylvania:&nbsp;$97,319</li>
<li>14. Portland-Vancouver-Hillsboro, Oregon-Washington:&nbsp;$82,667</li>
<li>15. Bridgeport-Stamford-Norwalk,&nbsp;Connecticut:&nbsp;$82,667</li>
</ol>
In contrast, areas like Killeen, Texas, are seeing much lower median down payments, attributed to the prevalence of 0% down mortgages provided by the U.S. Department of Veterans Affairs and no down payment loans from the U.S. Department of Agriculture, the report said.&nbsp;
Companies like&nbsp;Redfin Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rdfn#NASDAQ">RDFN</a>)&nbsp;and&nbsp;Zillow Group, Inc.&nbsp;have been at the forefront of the real estate market, offering innovative solutions and platforms for buyers and sellers.
In comparison,&nbsp;Anywhere Real Estate Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hous#NYSE">HOUS</a>)&nbsp;and&nbsp;RE/MAX Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rmax#NYSE">RMAX</a>)&nbsp;have leveraged their vast networks and established brand names to maintain a significant market share.&nbsp;
Investors looking to gain exposure to the real estate sector can consider ETFs such as&nbsp;iShares U.S. Real Estate ETF&nbsp;
and&nbsp;Real Estate Select Sector SPDR Fund.
These ETFs provide a diversified exposure to the industry, capturing the performance of both traditional and tech-driven real estate companies.
Now Read:&nbsp;<a href="https://www.benzinga.com/top-stories/22/08/28661838/heres-why-housing-prices-could-fall-by-20-in-183-cities-across-u-s" target="_blank">Here&#39;s Why Housing Prices Could Fall By 20% In 183 Cities Across US, Including Boise, Charlotte And Austin</a>
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Penny Stocks

Small Cap

HOUS

RDFN

RMAX

Here Are The 15 Cities Where Homebuyers Are Dropping The Heftiest Down Payments

Back in 2008, there was no topic more polarizing&nbsp;than the Treasury Department&#39;s financial bailouts of then-failing <a href="https://www.benzinga.com/topic/us-bank-bailouts">American companies.</a>
Supporters of the bailouts argued they were necessary to prevent economic collapse, while opponents argued it was not taxpayers&#39; responsibility to provide aid.
Fifteen years later, it&#39;s worth running through where the bailout money went and how much of it has been returned.
<h3>Fannie And Freddie</h3>
Together, these two government-sponsored mortgage aggregators received more than $187 billion in taxpayer money to stay afloat. In exchange, Federal National Mortgage Association (OTCBB: <a href="http://www.benzinga.com/stock/fnma">FNMA</a>) and Federal Home Loan Mortgage Corp (OTCBB: <a href="http://www.benzinga.com/stock/fmcc">FMCC</a>) were placed under government conservatorship, and are in the process of being &quot;<a href="https://www.cbo.gov/publication/56496">recapitalized</a>.&quot;
Related Link:&nbsp;<a href="https://www.benzinga.com/government/23/03/31438062/hefty-credit-suisse-bailout-costs-13-500-per-person-in-switzerland">Hefty Credit Suisse Bailout Costs $13,500 Per Person In Switzerland</a>
Fortunately for taxpayers, Fannie and Freddie&#39;s businesses have been steadily improving since the worst of the crisis, and a large portion of both entities&#39; profits has come back to the Treasury.
Result: $109&nbsp;billion profit
<h3>AIG</h3>
During the financial crisis, American International Group Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/aig#NYSE">AIG</a>) provided insurance to owners of sub-prime mortgage-backed securities. When it became clear that the company would have no means of paying the claims on these insurance policies on its own, the Treasury provided AIG with about $68 billion in taxpayer dollars in exchange for a near-<a href="http://online.wsj.com/articles/SB122156561931242905">80 percent equity stake</a> in the company via warrants.
Since AIG&#39;s core insurance business was never the cause of its problems, the company began to recover as soon as the economy stabilized.
By the end of 2012, the Treasury had sold all of its shares of AIG stock.
Result: $5 billion profit
<h3>General Motors And Chrysler</h3>
When the U.S. auto industry was in danger of disappearing into oblivion in 2008, the Treasury stepped in with bailouts for General Motors Company (NYSE: <a class="ticker" href="/stock/gm#NYSE">GM</a>) and Chrysler to the tune of $50.7 billion and $10.7 billion respectively.
In the case of GM, the government received a near-60 percent stake in the restructured company. The Treasury sold the last of its GM shares in late 2013.
Most of Chrysler&#39;s bailout money, meanwhile, was paid back by the end of 2011, when the government sold its final 6 percent stake in the company<a href="http://money.cnn.com/2011/07/21/autos/chrysler_government_exit/"> to Italian automaker Fiat</a>.
Result: $12.7 billion loss
<h3>Big Banks</h3>
The majority of the remaining 900-plus recipients of bailout funds were banks.
The largest bailout recipients were Bank of America Corp (NYSE: <a class="ticker" href="/stock/bac#NYSE">BAC</a>) and Citigroup Inc (NYSE: <a class="ticker" href="/stock/c#NYSE">C</a>), which each received $45 billion in disbursements from the Treasury. The Treasury eventually netted $4.5 billion in profit from Bank of America and $13.4 billion in profit from Citigroup in dividends and proceeds.
These types of profits were typical for the Treasury when it came to the bank bailouts, despite the fact that several smaller banks, such as CIT Group ($2.3 billion bailout), declared bankruptcy and <a href="http://online.wsj.com/articles/SB10001424052748703455804575057803874107176">never repaid</a> their debts.
From the bailouts of Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, and GMAC (now Ally Financial) alone, taxpayers netted a profit.
Result: $23 billion in profit
<h3>The Grand Total</h3>
When all was said and done, the U.S. Treasury coughed up <a href="http://projects.propublica.org/bailout/list/index">$635&nbsp;billion in bailout funds</a>.
Result: $109&nbsp;billion profit
Now Read:&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/23/03/31483237/billions-at-risk-as-catastrophic-flaws-found-in-dogecoin-and-280-crypto-networks">Billions At Risk As Catastrophic Flaws Found In Dogecoin, 280+ Crypto Networks</a>
Some elements of this story were previously reported by Benzinga and it has been updated.

Education

15 Years Later, How Much Did The 2008 Financial Crisis Bailouts Actually Cost American Taxpayers?

Leaders in finance and government recently convened at the annual World Economic Forum (WEF) in Davos, Switzerland, to discuss tough issues (i.e., post-pandemic fragmentation and multipolarity).
Benzinga attended the event and interviewed Corey Then, Vice President of Global Policy at Circle.
Then began his career in law, where one of his first cases involved the headline-grabbing defense of former CEO of Freddie Mac, or Federal Home Loan Mortgage Corporation (OTC: <a class="ticker" href="https://www.benzinga.com/stock/fmcc#OTC">FMCC</a>).
&quot;This was a big case in that it was on the front page of the newspapers and Warren Buffett was a witness,&quot; Then tells Benzinga.
After that, Then joined the White House.
&quot;There, I was in the Counsel&rsquo;s Office and Presidential Personnel. After that, I ran the economics team for a period of time and served the last four years of the Obama Administration,&quot; he says. He eventually left politics for traditional finance, working with Edward D. Jones &amp; Co. on various fintech initiatives.
&quot;This led me to Circle,&quot; Then adds. Read on for the full Q&amp;A (the below text was edited for clarity and concision).
<h3>BZ: What do you focus on in your role?</h3>
Then: I am part of the global policy team, and a contemporary of mine leads UK and EU efforts. My main focus, however, is the U.S. &mdash; the biggest market economy in the world. If we win with the U.S., much of the world may follow. I&rsquo;ve done some work in Singapore and Japan, too, given that we&rsquo;re a global company with our USDC in about 190 different countries just five years after launch.
<h3>How do you help push Circle&rsquo;s vision?</h3>
We&#39;re part of the strategy, global policy, and communications team. Between the three of those, there are blurred lines. You can&rsquo;t do one without the other, especially in this type of emerging industry. This reminds me of working at the White House where we had to break down silos to make sure everybody was on the same page.
All that the external world sees is your collective product. They don&rsquo;t see how the sausage was made, so to speak. Policies are important in our company strategy; public policy is extraordinarily important to our ability to grow, and our ability to serve our current customers and the customers that we&#39;d like to have going forward.
<h3>What challenges do you often face?</h3>
The broader crypto sphere has been going through a very challenging time. Circle is not entirely insulated. If the industry sneezes, we could catch a cold. However, we&#39;ve been focused on utility value as opposed to speculative value since our inception.
We enjoy that we have customers from around the world using USDC for real-world use cases. There&rsquo;s over $45 billion in circulation and growing. When money flows out of an emerging industry due to bad behaviors and business models, or interest rates rise and there is no longer as much easy money, you end up with the stuff that&rsquo;s emerging stronger.
<h3>It&rsquo;s crazy how quickly some of the frauds in crypto unravel, right?</h3>
I just watched a documentary on Bernie Madoff and he was able to forge documents for 40 years. He had a Ponzi scheme worth billions, and nobody caught him for 40 years because his old paper analog stuff was seemingly trustworthy. On the <a href="https://www.benzinga.com/money/best-blockchain-penny-stocks/">blockchain</a>, there&#39;s nowhere to hide.
<h3>What are your thoughts on the whole East and West tug of war, as well as the desire to reduce reliance on the U.S. dollar and the stablecoin debate?</h3>
There are about 115 countries looking at central bank digital currencies or CBDCs. This would be the Federal Reserve, Bank of Canada, or Bank of England issuing a cryptographic token. This suggests to us that they understand there&#39;s value in the technology and distributed ledger blockchains. There&rsquo;s value in the ability for money to move faster and more cheaply.
Those 115 countries represent 95% of the world&#39;s GDP. We don&rsquo;t think it&rsquo;s the right move, however. The analogy is as follows: The FAA sets very rigorous standards for jet engines, and they don&#39;t try to manufacture their own jet engine. Instead, they allow Boeing Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>), Lockheed Martin Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lmt#NYSE">LMT</a>), and others, to compete and make the best jet engine within those parameters. It&rsquo;s the same when it comes to money, we think. It sort of flies in the face of the history of the Fed to issue a cryptographic token.
The Fed banks other banks. The Fed doesn&rsquo;t bank retail users. Consequently, their issuing of a cryptographic token would be a fundamental shift in what they actually set out to do. Second, they would have to make big technology bets the government is likely not in the best place to make, much less be in a position to make upgrades. The third is the privacy component. Tokens can be tracked and these organizations can see precisely how you are spending your money. In America, that would be incompatible with our ethos as a country.
China, on the other hand, launched its own CBDC which has struggled to get adoption. Though they gave out a lot of free digital yuan, the velocity of money is not there, and that probably has a lot to do with privacy fears; the Chinese government already surveils people and gives them social credit scores. This seems like another way of engaging in control.
<h3>On the other side of that, I&rsquo;ve heard the argument that you can have a more targeted or effective monetary policy.</h3>
You could implement negative interest rates, or have money disappear at a certain date if it is not used. This could speed up consumption. However, is that a good thing? It seems that a private <a href="https://www.benzinga.com/money/best-sectors-to-invest-in-right-now/">sector</a> solution to transferring money on the Internet may be a better solution.
<h3>Want to talk about some use cases or case studies you are proud of?</h3>
Nearly $8 trillion worth of transactions have settled on-chain using USDC, and that&rsquo;s not anything to sniff at. It&rsquo;s real money used for a variety of things such as businesses paying suppliers and Treasury management. We&rsquo;re particularly effective at cross-border payments.
<h3>Care to elaborate?</h3>
Today, we rely on this system of correspondent banking where a bank in the US, if it wants to send money to Europe, it is slow and expensive. It may take a week, at times, for settlement. Using personal wallets, you can send money instantaneously at a very low cost. That&rsquo;s a very big use case. Remittances are a big market; about $650 billion annually and growing. There is a big addressable market for people who are in the least good position to wait in line two hours after they get their check for the week at these money service businesses charging 6% and leaving you with lengthy delays. Using USDC, you cut costs and time.
<h3>What about programmable money?</h3>
In addition to being faster and cheaper, being able to program money into smart contracts allows for a lot of if-and-then statements where you can cut the middlemen out of today&rsquo;s financial system and cost. For instance, if you&rsquo;re buying a home, typically there&rsquo;s an escrow agent that gets paid because there is uncertainty as to whether the deal will close. In the future, you may program money to say: &ldquo;If a tokenized title arrives in my account on X day, then Y funds must move.&rdquo; It would a trustless automatic transaction that was set up in advance through a smart contract.
<h3>And, with legislation, you could see adoption hyperdrive, right?</h3>
We need some legislation in the US. We&rsquo;ve talked to retailers who are interested in accepting USDC. More and more of them are, actually, doing that on their own. With some appropriate legislation, we can rationalize and create more clarity, particularly around redemptions. In the end, we&rsquo;re pushing payment system optionality. We partner with Mastercard Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ma#NYSE">MA</a>) and Visa Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/v#NYSE">V</a>). When you use a credit card, there&rsquo;s a charge, and we&rsquo;re looking forward to a future where costs can come down for consumers.
<h3>Can you talk to me about the Twitter relationship?</h3>
This is in regard to micropayments which are usually too expensive to effectuate today. When you get a like on Twitter, because you&#39;re a content creator, it would be nice to pay you. With today&rsquo;s systems, however, that&rsquo;s expensive. In working with Stripe, which has a partnership with Twitter, creators get paid USDC micropayments. It&rsquo;s an incentive.
<h3>How do you differentiate Circle from competitors?</h3>
We like to emphasize payments stablecoin. Stablecoin isn&#39;t the greatest term in the world. We sort of inherited it, and it was sort of besmirched by the likes of Terra Luna, which was stable in name only. I think we&#39;re a singular company at this point.
There are some offshore entities that don&#39;t subject themselves to U.S. regulations. As a result, it is an uneven playing field because you have regulation dodgers and regulation followers. We&#39;re obviously in the latter camp.
<h3>What are some ways crypto could be used to administer more effective stimulus?</h3>
During the pandemic, there was a moment when people were getting stimulus checks. You had to go through a whole process to make sure that you were sending checks to the right address, and so on and so forth. Hundreds of billions of dollars of fraud likely occurred. With <a href="https://www.benzinga.com/money/best-blockchain-penny-stocks/">blockchain</a>, you may be able to track the funds closely.
<h3>Do you have an example of how this tracking helps?</h3>
We just entered into a partnership with the UNHCR or United Nations High Commissioner for Refugees, the big humanitarian aid part of the UN. The UNHCR is sending USDC to Ukrainian migrants moving because of the war. You can see where that money ends up going. We&rsquo;ve also worked with the US government to get aid to workers in Venezuela who were not being paid during the pandemic. We sent USDC directly to those people. A lot of that money stayed on-chain, circulating. That indicates to us that money was used for payments.
<h3>I can&rsquo;t think of a better time to engage in conversations such as this. We&rsquo;re in Davos, of all places, during the World Economic Forum. Any last comments?</h3>
The WEF&rsquo;s theme &mdash; cooperation in a fragmented world &mdash; and the examples&nbsp;I just provided are very salient. In the end, we desire to make payment systems better. The US dollar is indispensable.

Interview

Davos 2023: Former Obama Appointee Discusses How Circle Defragments The Global Economy

Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two and a half years. But there was no question some big-name stocks performed better than others since the pandemic bottom.
New Residential&#39;s Bumpy Ride: One company that has been an impressive investment in the past two and a half years has been <a href="https://www.benzinga.com/money/mortgage-lenders-no-tax-returns/">mortgage</a> REIT New Residential Investment, now known as Rithm Capital Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ritm#NYSE">RITM</a>).
Related Link: <a href="https://www.benzinga.com/general/education/22/12/30190463/if-you-invested-1-000-in-costco-cost-stock-at-its-covid-19-pandemic-low-heres-how-much-youd-hav">If You Invested $1,000 In Costco (COST) Stock At Its COVID-19 Pandemic Low, Here&#39;s How Much You&#39;d Have Now</a> 
New Residential and other mortgage REITs were crushed in March 2020 as the pandemic created incredibly difficult financial conditions for the companies.
Recession fears tanked the value of New Residential&rsquo;s <a href="https://www.benzinga.com/money/mortgage-lenders-no-tax-returns/">mortgage</a>-backed securities (MBS). The company was ultimately forced to sell assets in unfavorable market conditions to shore up its balance sheet. It was also forced into a dividend cut.
Before the crisis, New Residential focused on originating <a href="https://www.benzinga.com/money/mortgage-lenders-no-tax-returns/">mortgage</a>s that didn&rsquo;t qualify to be purchased by Federal National Mortgage Association (OTC: <a class="ticker" href="https://www.benzinga.com/stock/fnma#OTC">FNMA</a>) or Federal Home Loan Mortgage Corp (OTC: <a class="ticker" href="https://www.benzinga.com/stock/fmcc#OTC">FMCC</a>). The lack of liquidity in the mortgage market during the COVID-19 crisis prompted New Residential to completely shift its business model to focus on mortgages that met Fannie Mae and Freddie Mac&rsquo;s purchase qualifications.
At the beginning of 2020, New Residential shares were trading at $16.16. By the beginning of March, the stock was down to $15.68 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
When the market crashed during the U.S. COVID-19 outbreak, New Residential shares dropped as low as $2.91 on April 3, 2020, during the height of the pandemic fears.
When the market bounced off pandemic lows, New Residential began to rebound as well. The stock reached $9.42 per share in June before the recovery rally fizzled out.
New Residential Mortgage regained the momentum of the broader market in the second half of 2020. The stock was back up above $10 by the end of the year.
New Residential In 2023, Beyond: As mortgage market conditions improved in 2021, New Residential started acquiring smaller lenders and expanding its market share.
New Residential stock hit its 2021 highs of $11.81 in November before pulling to finish off the year. The stock dipped back to as low as $6.86 in September 2022 after New Residential internalized its management and rebranded as Rithm Capital in June 2022. Today, shares are hovering around $8.44.
Related Link: <a href="https://www.benzinga.com/real-estate/reit/22/12/30134261/if-you-invested-1-000-in-invesco-mortgage-capital-ivr-stock-at-its-covid-19-pandemic-low-heres-h">If You Invested $1,000 In Invesco Mortgage Capital (IVR) Stock At Its COVID-19 Pandemic Low, Here&#39;s How Much You&#39;d Have Now</a>
Still, investors who bought New Residential on the day it hit its 2020 pandemic low and held on have generated a positive return on their investment. In fact, $1,000 in New Residential stock bought on Apr. 3, 2020, would be worth about $3,394 today, assuming reinvested dividends.
Looking ahead, analysts are expecting Rithm&#39;s stock to continue to recover in the next 12 months. The average price target among the 11 analysts covering the stock is $12, suggesting 41.8% upside from current levels.
Photo: Shutterstock

RITM

If You Invested $1,000 In Rithm Capital (RITM) Stock At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now

&quot;Mortgage rates tumbled this week due to incoming data that suggests inflation may have peaked,&quot; said Sam Khater, Freddie Mac&#39;s Chief Economist. &quot;While the decline in mortgage rates is welcome news, there is still a long road ahead for the housing market. Inflation remains elevated, the Federal Reserve is likely to keep interest rates high and consumers will continue to feel the impact.&quot;
Khater added, &quot;Over the last fifty years, Freddie Mac has closely monitored the trajectory of mortgage rates. This week we are launching enhancements to our Primary Mortgage Market Survey methodology that will increase its accuracy and reliability. This new approach will incorporate more detailed data and monitor real-time mortgage rates more closely.&quot;
Freddie Mac recently&nbsp;<a href="https://www.freddiemac.com/research/insight/20221103-freddie-macs-newly-enhanced-mortgage-rate-survey" target="_blank">announced</a>&nbsp;a number of PMMS&reg;&nbsp;enhancements to improve the collection, quality and diversity of data used. Instead of surveying lenders, the weekly results are now based on thousands of applications from across the country that are submitted to Freddie Mac when a borrower applies for a mortgage. Additionally, the PMMS&reg;&nbsp;will no longer publish fees/points or adjustable rates. The newly recast PMMS&reg;&nbsp;was put in place this week.
News Facts
<ul>
<li><a href="http://www.freddiemac.com/pmms/pmms_archives.html" target="_blank">30-year fixed-rate mortgage</a>&nbsp;averaged&nbsp;6.61 percent&nbsp;as of November 17, 2022, down from last week when it averaged&nbsp;7.08 percent. A year ago at this time, the 30-year FRM averaged&nbsp;3.10 percent.</li>
<li><a href="http://www.freddiemac.com/pmms/pmms_archives.html" target="_blank">15-year fixed-rate mortgage</a>&nbsp;averaged&nbsp;5.98 percent, down from last week when it averaged&nbsp;6.38 percent. A year ago at this time, the 15-year FRM averaged&nbsp;2.39 percent.</li>
</ul>
The PMMS&reg;&nbsp;is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put&nbsp;20 percent&nbsp;down and have excellent credit. For more information, view our&nbsp;<a href="https://www.freddiemac.com/pmms/pmms_faqs" target="_blank">Frequently Asked Questions</a>.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we&#39;ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at&nbsp;<a href="http://www.freddiemac.com/" target="_blank">FreddieMac.com</a>, Twitter&nbsp;<a href="http://www.twitter.com/FreddieMac" target="_blank">@FreddieMac</a>&nbsp;and Freddie Mac&#39;s blog&nbsp;<a href="http://www.freddiemac.com/blog" target="_blank">FreddieMac.com/blog</a>.

Econ #s

Mortgage Rates Tumble; Freddie Mac Released The Results Of Its Primary Mortgage Market Survey, Showing The 30-Year Fixed-Rate Mortgage Averaged 6.61%

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
<h3>What Happened</h3>
On this day in 2008, U.S. President George W. Bush signed the $700-billion Troubled Asset Relief Program bailout into law.
<h3>Where The Market Was</h3>
The Dow closed at 10,325.38 and the S&amp;P 500 traded at 1,099.23.
What Else Was Going On In The World
In 2008, the largest U.S. bank, Citigroup Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/c#NYSE">C</a>), reported fourth-quarter losses of $9.83 billion due to the collapse of the subprime mortgage market. Illinois Gov.&nbsp;Rod Blagojevich was arrested on charges of corruption, conspiracy to commit mail and wire fraud and solicitation of bribery. A gallon of gasoline cost $3.39.
<h3>Big Bank Bailout</h3>
At the time, the fear in Washington was that the bursting of the subprime mortgage bubble would result in the collapse of the U.S. banking system. The TARP program set aside $700 billion in capital that banks could use to keep the financial system liquid.
At the time, TARP did nothing to ease <a href="https://www.begintoinvest.com/october-3/">market fears</a>. From Oct. 2 to Oct. 10, 2008, the S&amp;P 500 crashed 19.3%.
Only about $441 billion of the $700 billion was&nbsp;deployed.
Despite harsh criticism from fiscal conservatives at the time, the TARP bailouts were ultimately a <a href="https://projects.propublica.org/bailout/">huge success</a>. In addition to preventing the collapse of the U.S. economy, the TARP bailouts and separate crisis bailouts of Federal National Mortgage Association (OTC: <a class="ticker" href="https://www.benzinga.com/stock/fnma#OTC">FNMA</a>) and Federal Home Loan Mortgage Corp (OTC: <a class="ticker" href="https://www.benzinga.com/stock/fmcc#OTC">FMCC</a>) have generated a net profit of $110&nbsp;billion for U.S. taxpayers.
Related Links:
<a href="https://www.benzinga.com/general/education/18/10/12432402/this-day-in-market-history-buffetts-3b-ge-bet">This Day In Market History: Buffett&#39;s $3B GE Bet</a>
<a href="https://www.benzinga.com/general/politics/18/07/12066743/trumps-bailout-for-farmers-caught-in-the-trade-war-what-you-need-to-">Trump&#39;s Bailout For Farmers Caught In The Trade War: What You Need To Know</a>

Bush Signs $700B TARP Bailout 14 Years Ago Today

While July gave markets around the world a breather, August reestablished 2022&rsquo;s choppy financial conditions.
The SPDR S&amp;P 500 ETF Trust (NYSEARCA: SPY) declined by 4.08% in August, its fifth month of decline in 2022. The Fidelity NASDAQ Composite Index ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/oneq#NASDAQ">ONEQ</a>) and the SPDR Dow Jones Industrial Average ETF (NYSEARCA: DIA) mirrored this downward trend, showing monthly decreases of 4.59% and 3.96%, respectively, in August.
Given the possibility &mdash; some think <a href="https://tradingeconomics.com/united-states/interest-rate">probability</a> &mdash; that the Federal Reserve will hike rates yet again in September, and the fact that global economies are <a href="https://blogs.imf.org/2022/07/26/global-economic-growth-slows-amid-gloomy-and-more-uncertain-outlook/#:~:text=Inflation%20this%20year%20is%20anticipated,projected%20to%20remain%20elevated%20longer.">experiencing</a> growing inflationary pressures, investor sentiment appears to have altered course in August when compared to July. While some warn that the U.S. may be heading into a <a href="https://www.bnnbloomberg.ca/long-moderate-and-painful-what-next-us-recession-may-look-like-1.1787303">prolonged</a> recession, others report that recent macroeconomic data &mdash; like a 3.7% <a href="https://www.marketwatch.com/economy-politics/calendar">unemployment</a> rate &mdash; do not support this argument.
Even as ambiguity surrounds the market&rsquo;s future movements, OTC Markets Group Inc.&rsquo;s (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/otcm#OTCQX">OTCM</a>) regulated markets experienced a slight increase in total monthly volume in August, recording $39.3 billion in trades for the month compared to $37.3 billion in July. Additionally, two Ethereum-based securities found themselves in improved positions on the OTCQX Best Market&rsquo;s Most Active list.&nbsp;
Finally, a number of new securities have emerged on the OTCQX Best Market and OTCQB Venture Market, which could potentially be of interest to investors despite the relatively bearish sentiment experienced throughout the month and year so far. Both the OTCQX Best Market and the OTCQB Venture Market maintained a significant international presence in August, with over half of the top most-traded securities across both markets being composed of international operators.
<h3>A Dive Into The OTCQX Best Market&rsquo;s Most-Active List</h3>
The OTCQX Best Market recorded $7 billion in trades in August, a figure that has been relatively unchanged since July.&nbsp;
Grayscale Ethereum Trust (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/ethe#OTCQX">ETHE</a>) rose to the top of OTCQX Best Market&rsquo;s most-active list, while steadfast performers Roche Holding AG (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/rhhby#OTCQX">RHHBY</a>) and Grayscale Bitcoin Trust (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/gbtc#OTCQX">GBTC</a>) slotted in as the second and third most-traded securities.&nbsp;
Additionally, OTCQX&rsquo;s top 10 most-active securities experienced a slight reshuffle in August, welcoming Imperial Brands PLC (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/imbby#OTCQX">IMBBY</a>), a multinational tobacco company, and Computer Services Inc. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/csvi#OTCQX">CSVI</a>). The two displace Danone S.A. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/danoy#OTCQX">DANOY</a>) and Zurich Insurance Group Ltd. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/zurvy#OTCQX">ZURVY</a>), two usuals in the OTCQX&rsquo;s Top 10 Most Active list.
Despite poor market conditions around the globe, the OTCQX Best Market has managed to maintain its hold on a number of industries, as demonstrated by the constituents of its Most Active list. Below are some of the companies on the list along with their relevant specialties:&nbsp;
<ul>
<li>Infineon Technologies AG (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/ifnny#OTCQX">IFNNY</a>): Semiconductor solutions.</li>
<li>BASF SE (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/basfy#OTCQX">BASFY</a>) (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/bffaf#OTCQX">BFFAF</a>): Chemical manufacturing.&nbsp;</li>
<li>Grayscale Bitcoin Trust (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/gbtc#OTCQX">GBTC</a>): Digital currency investment product</li>
<li>Trulieve Cannabis Corp. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/tcnnf#OTCQX">TCNNF</a>): Cannabis sales and cultivation.</li>
<li>Heineken N.V. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/heiny#OTCQX">HEINY</a>): Alcohol manufacturing and distribution.</li>
</ul>
Of the 30 securities on the Most Active list, 22 were international operators. Some of these were new faces like the United Kingdom&rsquo;s Imperial Brands and Canada&rsquo;s Reconnaissance Energy Africa Ltd. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/recaf#OTCQX">RECAF</a>), while some regulars like Germany&rsquo;s Adidas AG (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTCQX">ADDYY</a>) and the United Kingdom&rsquo;s Anglo American PLC (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/ngloy#OTCQX">NGLOY</a>) were also present.
Other notable volume movers:
<ul>
<li>Grayscale Ethereum Classic Trust (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/etcg#OTCQX">ETCG</a>) claimed the 23rd spot on the OTCQX&rsquo;s Most Active list, experiencing a 112% increase in trading volume.</li>
</ul>
<h3>The OTCQB Venture Market Experiences A Reshuffle In August</h3>
The OTCQB Venture Market recorded $601 million in trades in August, an increase from July&rsquo;s $463 million figure.
Like the OTCQX Best Market, the OTCQB Venture Market&rsquo;s Top 10 Most Active list saw two new entries. Specifically, American Lithium Corp. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/liacf#OTCQB">LIACF</a>) and Todos Medical Ltd. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/tomdf#OTCQB">TOMDF</a>) made their way into the top 10.
Similar to July, the OTCQB Venture Market witnessed a number of novelties in August. In addition to two new companies on the Top 10 Most Active list, the second, third and fourth most-active securities also changed. Computer memory subsystems specialist Netlist Inc. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/nlst#OTCQB">NLST</a>), mortgage financiers Federal Home Loan Mortgage Corp. (Freddie Mac) (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/fmcc#OTCQB">FMCC</a>), and Federal National Mortgage Association (Fannie Mae) (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/fnma#OTCQB">FNMA</a>) made way for Stemtech Corp. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/stek#OTCQB">STEK</a>), Northwest Biotherapeutics Inc. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/nwbo#OTCQB">NWBO</a>) and American Battery Technology Co. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/abml#OTCQB">ABML</a>).&nbsp;
Thirteen international securities landed a spot on the OTCQB Venture Market&rsquo;s Most Active list. Of these, four are Australian, six are Canadian, one is Israeli, one is South African and one is from Hong Kong.&nbsp;
Other notable movers:&nbsp;
<ul>
<li>Snowline Gold Corp. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/snwgf#OTCQB">SNWGF</a>) climbed to 12th place on the Most Active list and recorded an $8.6 million rise in trading volume compared to last month.</li>
<li>Hugoton Royalty Trust (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/hgtxu#OTCQB">HGTXU</a>) climbed to 13th place in the Most Active list and recorded an $8.5 million rise in trading volume compared to last month.</li>
<li>DSG Global Inc. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/dsgt#OTCQB">DSGT</a>) climbed to 17th place on the Most Active list and recorded a $5.5 million rise in trading volume compared to last month.</li>
</ul>
The OTCQX And OTCQB Top 10
Below are the top 10 most actively traded securities on the OTCQX Best Market and OTCQB Venture Market in August.&nbsp;
OTCQX Top 10:&nbsp;
<table>
<tbody>
<tr>
<td>
Company Name
</td>
<td>
Symbol
</td>
<td>
August Dollar Volume
</td>
</tr>
<tr>
<td>
Grayscale Ethereum Trust (ETH)
</td>
<td>
<a href="http://www.otcmarkets.com/stock/ETHE/quote">ETHE</a>
</td>
<td>
$1,114,134,926
</td>
</tr>
<tr>
<td>
Roche Holding Ltd.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/RHHBY/quote">RHHBY</a>
</td>
<td>
$935,026,316
</td>
</tr>
<tr>
<td>
Grayscale Bitcoin Trust (BTC)
</td>
<td>
<a href="http://www.otcmarkets.com/stock/GBTC/quote">GBTC</a>
</td>
<td>
$921,411,988
</td>
</tr>
<tr>
<td>
adidas AG
</td>
<td>
<a href="http://www.otcmarkets.com/stock/ADDYY/quote">ADDYY</a>
</td>
<td>
$302,833,956
</td>
</tr>
<tr>
<td>
Computer Services Inc.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/CSVI/quote">CSVI</a>
</td>
<td>
$292,875,479
</td>
</tr>
<tr>
<td>
BNP Paribas
</td>
<td>
<a href="http://www.otcmarkets.com/stock/BNPQY/quote">BNPQY</a>
</td>
<td>
$291,431,930
</td>
</tr>
<tr>
<td>
Anglo American plc
</td>
<td>
<a href="https://www.otcmarkets.com/stock/NGLOY/quote">NGLOY</a>
</td>
<td>
$195,164,216
</td>
</tr>
<tr>
<td>
Infineon Technologies AG&nbsp;
</td>
<td>
<a href="http://www.otcmarkets.com/stock/IFNNY/quote">IFNNY</a>
</td>
<td>
$168,045,608
</td>
</tr>
<tr>
<td>
Imperial Brands PLC
</td>
<td>
<a href="http://www.otcmarkets.com/stock/IMBBY/quote">IMBBY</a>
</td>
<td>
$167,522,020
</td>
</tr>
<tr>
<td>
BASF SE
</td>
<td>
<a href="https://www.otcmarkets.com/stock/BASFY/quote">BASFY</a>
</td>
<td>
$153,897,600
</td>
</tr>
</tbody>
</table>
OTCQB Top 10:&nbsp;
<table>
<tbody>
<tr>
<td>
Company Name
</td>
<td>
Symbol
</td>
<td>
August Dollar Volume
</td>
</tr>
<tr>
<td>
CytoDyn Inc.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/CYDY/quote">CYDY</a>
</td>
<td>
$64,363,191
</td>
</tr>
<tr>
<td>
Stemtech Corp.
</td>
<td>
<a href="https://www.otcmarkets.com/stock/STEK/quote">STEK</a>
</td>
<td>
$49,237,636
</td>
</tr>
<tr>
<td>
Northwest Biotherapeutics Inc.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/NWBO/quote">NWBO</a>
</td>
<td>
$25,610,301
</td>
</tr>
<tr>
<td>
American Battery Technology Co.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/ABML/quote">ABML</a>
</td>
<td>
$21,298,838
</td>
</tr>
<tr>
<td>
Netlist Inc.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/NLST/quote">NLST</a>
</td>
<td>
$17,770,131
</td>
</tr>
<tr>
<td>
Fannie Mae&nbsp;
</td>
<td>
<a href="http://www.otcmarkets.com/stock/FNMA/quote">FNMA</a>
</td>
<td>
$17,430,475
</td>
</tr>
<tr>
<td>
Lake Resources N.L.&nbsp;
</td>
<td>
<a href="http://www.otcmarkets.com/stock/LLKKF/quote">LLKKF</a>
</td>
<td>
$14,688,357
</td>
</tr>
<tr>
<td>
American Lithium Corp.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/LIACF/quote">LIACF</a>
</td>
<td>
$14,031,588
</td>
</tr>
<tr>
<td>
Freddie Mac&nbsp;
</td>
<td>
<a href="https://www.otcmarkets.com/stock/FMCC/quote">FMCC</a>
</td>
<td>
$13,769,993
</td>
</tr>
<tr>
<td>
Todos Medical Ltd.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/TOMDF/quote">TOMDF</a>
</td>
<td>
$13,610,935
</td>
</tr>
</tbody>
</table>
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
Featured photo by Annie Spratt on <a href="https://unsplash.com/photos/hWJsOnaWTqs">Unsplash</a>

ABML

ADDYY

BASFY

BFFAF

CSVI

DANOY

DSGT

ETCG

ETHE

GBTC

HEINY

HGTXU

IFNNY

IMBBY

AMERICAN LITHIUM CORP ORD by American Lithium Corp.

LIACF

NGLOY

NLST

NWBO

Fidelity NASDAQmposite Index Fund ETF-Tracking NASDAQmposite Index

ONEQ

OTCM

RECONNAISSANCE EGY AFRICA by Reconnaissance Energy Africa Ltd.

RECAF

RHHBY

SNWGF

STEK

TCNNF

TOMDF

ZURVY

A Quick Look At The OTC Markets' Most-Active Securities In August - Here's What You Need to Know

Mortgage rates are at their highest point since the Great Recession as housing affordability continues to decline, according to Freddie Mac (OTCMKTS: FMCC) <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-maintain-their-ascent?_ga=2.223695192.297436042.1662670124-1966878786.1662670124">data</a>.
The 30-year fixed increased from 5.66% to 5.89%. The long-term rate hasn&#39;t been this high since November 2008, shortly after the Great Recession was triggered by the collapse of the housing market.
In 2021, the 30-year fixed was 2.88%. The typical rate on 15-year fixed&nbsp;mortgages increased from 4.98% to 5.16% last week. The rate at this time last year was 2.19%.
See Also:&nbsp;<a href="https://www.benzinga.com/news/22/09/28724350/housing-prices-jumped-just-0-1-last-month-but-it-could-be-a-sign-for-the-next-big-price-hike-heres-w">Housing Prices Jumped Just 0.1% Last Month, But It Could Be A Sign For The Next Big Price Hike: Here&#39;s Why</a>
Rates decreased in July and the first few days of August as recession fears mounted. Rates reversed higher after hawkish remarks made by Fed Chairman Jerome Powell at the central bank&#39;s conference in Jackson Hole last month; investors&#39; attention was once again drawn to the Fed&#39;s efforts to bring inflation down which is floating around 40-year highs.
<img alt="" src="https://www.benzinga.com/files/u176590/mortgage_chart.png" style="height:727px; width:962px" />
<h3>Potential Buyers Lose Interest</h3>
&ldquo;Home-touring activity took a nosedive, and the share of sellers dropping their price remained near a record high,&rdquo; wrote Redfin Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rdfn#NASDAQ">RDFN</a>) in a Thursday press release.
Sales of existing homes in the U.S. have fallen for six straight months, according to the <a href="https://www.nar.realtor/newsroom/pending-home-sales-slipped-1-0-in-july">National Association of Realtors</a>.
Fewer people searched for &ldquo;homes for sale&rdquo; on Google. In fact, searches during the week ending Sept. 3 were down 25% from a year earlier.
<ul>
<li>Touring activity as of Sept. 4 was down 38% from the start of the year at Redfin, compared to a 3% increase at the same time last year.</li>
<li>Mortgage purchase applications were down 1% week over week, seasonally adjusted, and were down 23% from a year earlier during the week ending Sept. 2</li>
</ul>
<h3>Lenders Affected</h3>
Mortgage lender Home Point Financial, a subsidiary of Home Point Capital Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hmpt#NASDAQ">HMPT</a>) announced plans to lay off 526 staff members beginning Nov. 1, due to decreased demand in homes
Mortgage originator Rocket Companies Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rkt#NYSE">RKT</a>) spent $61 million in the second quarter in voluntary buyouts to 8% of Rocket&rsquo;s operations team and other groups in its Amrock title and valuation business. Rocket issued a second, smaller voluntary buyout to an undisclosed number of employees across its multiple businesses in August.
Re/Max Holdings Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rmax#NYSE">RMAX</a>) said early in July that is planned to cut 17%, or 120 staff members affecting the company&rsquo;s technology workers, including operators of the &ldquo;book&rdquo; platform, its customer relationship management software for brokers and agents.
<h3>Industry Consolidates</h3>
Two direct-to-consumer lenders AmeriSave Wholesale Mortgage Solutions, and Suburban Mortgage Inc. abruptly shut down in late August.
First Guaranty Mortgage Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fgbi#NASDAQ">FGBI</a>) and Sprout Mortgage, in addition real estate fintech Reali announced plans to close its door on Sept. 2.
With consolidation in the industry, and less wholesale lenders to contend with, companies like UWM Holdings Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uwmc#NYSE">UWMC</a>) may benefit as there are a finite number of mortgages to originate.
UWMC could gain market share with each shop that closes its doors.
Image: Pixabay

Commodities

Topics

FGBI

HMPT

Housing Activity 'Took A Nosedive' As Mortgage Rates Hit 15-Year Highs - A Chart That Says It All

July gave world markets a breather from 2022&rsquo;s poor financial conditions.
The SPDR S&amp;P 500 ETF Trust (NYSEARCA: SPY) increased 9.21% in July, its highest monthly price ascension since November 2020. The Fidelity NASDAQ Composite Index ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/oneq#NASDAQ">ONEQ</a>) and the SPDR Dow Jones Industrial Average ETF (NYSEARCA: DIA) displayed similar optimism, showing monthly increases of 12.51% and 6.78%, respectively, in July.
The market has reacted favorably to some recent developments, including The Federal Reserve&rsquo;s decision to maintain rather than increase interest rates as well as the release of this <a href="https://www.bls.gov/">report</a>, which reveals that 528,000 jobs have been added to the economy. Some expert traders, however, remain skeptical of July&rsquo;s bullish movement, noting the similarity of this rally to the one experienced in 2008. The latter was followed by a second wave of downward movement that stretched over months.
As ambiguity simmers surrounding market sentiment, OTC Markets Group Inc.&rsquo;s (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/otcm#OTCQX">OTCM</a>) regulated markets experienced a slight decrease in total monthly volume, recording $37.3 billion in July compared to $45.2 billion in June.
Despite the decrease, a number of new securities have emerged onto the OTCQX Best Market and OTCQB Venture Market, possibly demonstrating the ability to attract interest in a wide range of industries. Both the OTCQX Best Market and the OTCQB Venture Market maintained a significant international presence, with over half of the top most-traded securities across both markets composed of international operators.
<h3>A Dive Into The OTCQX Best Market&rsquo;s Most-Active List</h3>
The OTCQX Best Market recorded $7 billion in trading volume in July, a decrease from June&rsquo;s $9 billion.
Weathering the storm of decreasing volume are the OTCQX Best Market&rsquo;s steadfast volume performers Roche Holding AG (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/rhhby#OTCQX">RHHBY</a>), Grayscale Bitcoin Trust (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/gbtc#OTCQX">GBTC</a>) and Grayscale Ethereum Trust (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/ethe#OTCQX">ETHE</a>). In July, Roche Holding reaped the most trading volume as opposed to Grayscale Bitcoin Trust, which took that spot in June.
Additionally, OTCQX&rsquo;s top 10 most-active securities experienced a slight reshuffle in July, welcoming BASF SE (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/basfy#OTCQX">BASFY</a>) and Zurich Insurance Group Inc. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/zurvy#OTCQX">ZURVY</a>) in place of Experian plc (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/expgy#OTCQX">EXPGY</a>) and Tesco PLC (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/tscdy#OTCQX">TSCDY</a>).
Despite decreasing month-on-month volume figures, the OTCQX Best Market has managed to maintain its hold on a number of industries, as demonstrated by the constituents of its Most Active list. Below are some of the companies and their relevant specialties:&nbsp;
<ul>
<li>Danone S.A. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/danoy#OTCQX">DANOY</a>): Healthcare.</li>
<li>Infineon Technologies AG (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/ifnny#OTCQX">IFNNY</a>): Semiconductor solutions.</li>
<li>BASF SE (OTCQX: BASFY; BFFAF): Chemical manufacturing.&nbsp;</li>
<li>Grayscale Bitcoin Trust (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/gbtc#OTCQX">GBTC</a>): Cryptocurrency mining.</li>
<li>Trulieve Cannabis Corp. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/tcnnf#OTCQX">TCNNF</a>): Cannabis sales and cultivation.</li>
<li>Heineken N.V. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/heiny#OTCQX">HEINY</a>): Alcohol manufacturing and distribution.</li>
</ul>
Similar to June, 23 of the 30 Most Active constituents on the OTCQX Best Market were international operators. Some of these included new faces like Switzerland&rsquo;s Zurich Insurance Group and Germany&#39;s BASF SE, but regulars like Germany&rsquo;s Adidas AG (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/addyy#OTCQX">ADDYY</a>) and the United Kingdom&rsquo;s Anglo American PLC (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/ngloy#OTCQX">NGLOY</a>) were also present.
Other notable movers:
<ul>
<li>Ayr Wellness Inc. (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/ayrwf#OTCQX">AYRWF</a>) claimed the No. 30 spot on the OTCQX&rsquo;s list of most-traded securities, experiencing a 150% change in trading volume from last month.</li>
</ul>
<h3>The OTCQB Venture Market Experiences A Reshuffle In July</h3>
The OTCQB Venture Market recorded $463 million in trading volume in July, a decline from June&rsquo;s $603 million figure.
July introduced several new entities to the OTCQB&rsquo;s Top 10 Most Active list. Stem-cell specialist Stemtech Corp. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/stek#OTCQB">STEK</a>) and mining operator Brazil Minerals Inc. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/bmix#OTCQB">BMIX</a>) were among the new additions.
Similar to June, the OTCQB Venture Market witnessed a number of novelties in July. In addition to three new companies, all three of the most-traded securities in the market changed. June&rsquo;s OTCQB Most Active leaders Freddie Mac (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/fmcc#OTCQB">FMCC</a>) and Lake Resources (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/llkkf#OTCQB">LLKKF</a>) made way for biotech operator CytoDyn Inc. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/cydy#OTCQB">CYDY</a>) and computer memory subsystems specialist Netlist Inc. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/nlst#OTCQB">NLST</a>).
Thirteen international securities landed a spot on the OTCQB Venture Market&rsquo;s Most Active list. Of these 13, three are Australian, eight are Canadian, one is British and one is from Hong Kong.
Other notable movers:
<ul>
<li>Snowline Gold Corp. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/snwgf#OTCQB">SNWGF</a>) climbed to 15th place in the Most Active list and recorded a $3.8 million rise in trading volume compared to last month.&nbsp;</li>
<li>88 Energy Ltd. (OTCQB: <a class="ticker" href="https://www.benzinga.com/stock/eeenf#OTCQB">EEENF</a>) climbed to 13th place in the Most Active list and recorded a $3.5 million rise in trading volume compared to last month.</li>
</ul>
The OTCQX And OTCQB Top 10
Below are the top 10 most actively traded securities on the OTCQX Best Market and OTCQB Venture Market in July.&nbsp;
OTCQX Top 10:&nbsp;
<table>
<tbody>
<tr>
<td>
Company Name
</td>
<td>
Symbol
</td>
<td>
July Dollar Volume
</td>
</tr>
<tr>
<td>
Roche Holding Ltd.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/RHHBY/quote">RHHBY</a>
</td>
<td>
$1,174,038,337
</td>
</tr>
<tr>
<td>
Grayscale Bitcoin Trust (BTC)
</td>
<td>
<a href="http://www.otcmarkets.com/stock/GBTC/quote">GBTC</a>
</td>
<td>
$1,171,194,870
</td>
</tr>
<tr>
<td>
Grayscale Ethereum Trust (ETH)
</td>
<td>
<a href="http://www.otcmarkets.com/stock/ETHE/quote">ETHE</a>
</td>
<td>
$824,696,740
</td>
</tr>
<tr>
<td>
adidas AG
</td>
<td>
<a href="http://www.otcmarkets.com/stock/ADDYY/quote">ADDYY</a>
</td>
<td>
$242,545,358
</td>
</tr>
<tr>
<td>
Danone
</td>
<td>
<a href="https://www.otcmarkets.com/stock/DANOY/quote">DANOY</a>
</td>
<td>
$236,789,470
</td>
</tr>
<tr>
<td>
BNP Paribas
</td>
<td>
<a href="http://www.otcmarkets.com/stock/BNPQY/quote">BNPQY</a>
</td>
<td>
$221,832,673
</td>
</tr>
<tr>
<td>
Infineon Technologies AG&nbsp;
</td>
<td>
<a href="http://www.otcmarkets.com/stock/IFNNY/quote">IFNNY</a>
</td>
<td>
$155,256,947
</td>
</tr>
<tr>
<td>
BASF SE
</td>
<td>
<a href="https://www.otcmarkets.com/stock/BASFY/quote">BASFY</a>
</td>
<td>
$133,635,750
</td>
</tr>
<tr>
<td>
Anglo American plc
</td>
<td>
<a href="https://www.otcmarkets.com/stock/NGLOY/quote">NGLOY</a>
</td>
<td>
$129,304,530
</td>
</tr>
<tr>
<td>
Zurich Insurance Group Ltd.
</td>
<td>
<a href="https://www.otcmarkets.com/stock/ZURVY/quote">ZURVY</a>
</td>
<td>
$125,075,924
</td>
</tr>
</tbody>
</table>
OTCQB Top 10:&nbsp;
<table>
<tbody>
<tr>
<td>
Company Name
</td>
<td>
Symbol
</td>
<td>
July Dollar Volume
</td>
</tr>
<tr>
<td>
CytoDyn Inc.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/CYDY/quote">CYDY</a>
</td>
<td>
$37,078,914
</td>
</tr>
<tr>
<td>
Netlist Inc.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/NLST/quote">NLST</a>
</td>
<td>
$34,113,360
</td>
</tr>
<tr>
<td>
Freddie Mac&nbsp;
</td>
<td>
<a href="https://www.otcmarkets.com/stock/FMCC/quote">FMCC</a>
</td>
<td>
$30,241,752
</td>
</tr>
<tr>
<td>
Fannie Mae&nbsp;
</td>
<td>
<a href="http://www.otcmarkets.com/stock/FNMA/quote">FNMA</a>
</td>
<td>
$27,396,005
</td>
</tr>
<tr>
<td>
Northwest Biotherapeutics Inc.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/NWBO/quote">NWBO</a>
</td>
<td>
$22,674,446
</td>
</tr>
<tr>
<td>
American Battery Technology Co.
</td>
<td>
<a href="http://www.otcmarkets.com/stock/ABML/quote">ABML</a>
</td>
<td>
$16,153,987
</td>
</tr>
<tr>
<td>
Humbl Inc.
</td>
<td>
<a href="https://www.otcmarkets.com/stock/HMBL/quote">HMBL</a>
</td>
<td>
$14,817,569
</td>
</tr>
<tr>
<td>
Stemtech Corp.
</td>
<td>
<a href="https://www.otcmarkets.com/stock/STEK/quote">STEK</a>
</td>
<td>
$12,940,312
</td>
</tr>
<tr>
<td>
Lake Resources N.L.&nbsp;
</td>
<td>
<a href="http://www.otcmarkets.com/stock/LLKKF/quote">LLKKF</a>
</td>
<td>
$11,131,503
</td>
</tr>
<tr>
<td>
Brazil Minerals Inc.
</td>
<td>
<a href="https://www.otcmarkets.com/stock/BMIX/quote">BMIX</a>
</td>
<td>
$7,447,947
</td>
</tr>
</tbody>
</table>
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
Featured photo by Annie Spratt on <a href="https://unsplash.com/photos/hWJsOnaWTqs">Unsplash</a>

AYRWF

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