The Zacks Analyst Blog Highlights: PHM, AAON, FND, IBP And CNR
Zacks Investment Research | Mar 13, 2020 12:21AM ET
For Immediate Release
Chicago, IL – March 13, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include PulteGroup, Inc. (NYSE:PHM) , AAON, Inc. (NASDAQ:AAON) , Floor & Decor Holdings, Inc. (NYSE:FND) , Installed Building Products, Inc. (NYSE:IBP) and Cornerstone Building Brands, Inc. (NYSE:CNR) .
Here are highlights from Thursday’s Analyst Blog:
U.S. Mortgage Rate Hits 8-Year Low: 5 Stocks to Invest In
According to mortgage buyer Freddie Mac, the 30-year mortgage rate fell to 3.29% in the week ending Mar 6, hitting the lowest point since 1971. In the past week, markets have been volatile as investors rushed to buy less risky 10-year Treasury note, pushing its yield to fall below 1%, its lowest level on record. The 30-year mortgage rate tracks the 10-year treasury yield.
The decline in mortgage rates will spur demand for more homes, thereby boosting the U.S. housing market this year. In fact, the Mortgage Bankers Association (MBA) expects refinancing demand to last till coronavirus fears subside and rates stabilize.
Mortgage Refinancing Spikes
The stock marker witnessed a roller-coaster ride in the week ending Mar 6 as the spread of coronavirus clouded investors’ sentiment. With the drop-in mortgage rates there was a significant jump in home loan refinancing applications. In fact, total mortgage application rose 55.4% last week compared to the week before.
Refinancing application hit the highest level since April 2009, rising 79% in the week and 479% from a year ago. According to the MBA, the index measuring purchase applications was 12%, higher than a year ago.
Further, MBA stated that refinancing organizations forecast the volume of refinancing to hit $1.2 trillion by 2020.The figure would mean a 37% increase from the previous year and also “the strongest refinance volume since 2012.”
5 Housing Stocks to Buy
Given the current boom in refinancing and low mortgage rates, it is prudent to invest in home building companies and housing related stocks. Hence, we have shortlisted five such stocks that sport a Zacks Rank #1 (Strong Buy) and generate high returns. You can see Zacks Investment Research
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