BUZZ-Mortgage lender stocks rise as Fed chair signals possible rate cut in September

Reuters
08/22
BUZZ-Mortgage lender stocks rise as Fed chair signals possible rate cut in September

** Mortgage lender stocks rise after Federal Reserve chair Jerome Powell signals possible rate cut in September

** LoanDepot LDI.N up 5.4%, Rocket Companies RKT.N jumps 8.5%, UWM Holdings Corporation UWMC.N up 8.6%

** Mortgage lenders have had to contend with sharp declines in origination volumes in recent years due to higher interest rates

** Rate cuts would draw more buyers into the market as when rates go up, loans get costlier and mortgages become more expensive for consumers

** The Fed lowered interest rates last year but has held them steady in 2025 due to geopolitical tensions, shifts in trade policy, and ongoing inflation concerns

(Reporting by Prakhar Srivastava in Bengaluru)

((Prakhar.srivastava2@thomsonreuters.com))

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