U.S. homebuilders, mortgage lenders down as yields soar

Shares of interest rate-sensitive homebuilders and mortgage lenders fall on Weds as yields surge

Benchmark U.S. Treasury 10-year yield US10YT=RR recently around 4.40% after hitting seven-week high on apparent large bond liquidations US/

Rising rates can boost mortgage rates, which can potentially hurt homebuilders and lenders

PHLX Housing Index .HGX down ~1% on the session

Homebuilders Pultegroup PHM.N down 0.9%. LGI Homes LGIH.O off 2.6% and Lennar LEN.N down 0.5%, while DR Horton DHI.N flat

HGX biggest loser is mortgage lender PennyMac Financial Services PFSI.N, off 5%

Meanwhile, shares of Rocket Companies RKT.N down nearly 8% and Mr. Cooper Group COOP.O down >7%

Last week, RKT said it will buy COOP in ~$9 bln all-stock deal

In recent years, mortgage lenders have grappled with sharp declines in origination volumes due to higher interest rates

S&P 500 .SPX edges higher on Weds, looking to snap a bruising four-day skid amid escalating U.S.-China trade war .N