This Friday, Federal National Mortgage Association (NYSE:FNMA) stock tumbled 18.77% down in a heavy volume, smacking the bottom from this July.
One day after the released by Fannie Mae National Housing Survey and as opposed to the respondents’ relatively optimistic mood, 78.6 million FNMA shares changed hands in confirmation of investor uncertainty towards the future of the housing finance system.
During the last day of the week, in unison with the increasing major indices, FNMA stock entered the market with a 0.72% increase from the previous day.
During the bluish past week, when the S&P 500 climbed 1.5%, sending the benchmark index to a 0.9% gain for the year, and when eight of the 10 sectors advanced, the mortgage investment industry was unfortunately not in the above mentioned list of gainers.
After the hot bids and the volume exceeding ten times the average for FNMA, the shares closed the week at $0.225, being in the range of their 52-week low.
According to FNMA’s National Housing Survey, only 30 percent of the respondents think that the economy is on the right track, compared to 31 percent in January. At the same time, 44 percent expect their personal financial situation to improve in the next year.[BANNER]
It looks like before the beginning of the winter season, which is not the best time for doing home investments, the consumer stress and the overall mortgage investment industry difficulties put the just revitalized since this spring FNMA stock under pressure.
The survey also says that “Thirty-three percent of the general population are “stressed” about their ability to make payments on their debts. Forty-three percent of renters and 81 percent of delinquent borrowers say they are stressed – while 53 percent of delinquent borrowers say they are “very stressed.”
It is not known how the relative investor optimism will influence FNMA share price in the nearest future, but one is clear. These days, FNMA stock was stressed, in unison with the stress of the investors and the consumers.
