U.S. homebuilders rally, mortgage lenders pare losses as equities rebound

Shares of homebuilders swing into the green and some mortgage lenders trim losses as equities jump on Weds after Trump announces 90-day tariff pause .N

Homebuilders and mortgage lenders, which are sensitive to Interest rates, were down earlier in the session as yields surged to seven-week highs on apparent large bond liquidations

Benchmark U.S. Treasury 10-year yield US10YT=RR recently around 4.41% after Treasury saw strong demand for sale of the notes on Weds, potentially easing concerns US/

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

PHLX Housing Index .HGX last up 6.6% on the session

Homebuilders Pultegroup PHM.N up 5.6%. LGI Homes LGIH.O up ~9%, Lennar LEN.N up ~6% and DR Horton DHI.N up 5.5%

HGX component and mortgage lender PennyMac Financial Services PFSI.N now up 2%

Meanwhile, shares of mortgage lenders Rocket Companies RKT.N and Mr. Cooper COOP.O down just 4% and 2%, respectively, recouping steeper declines

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 surging >7% on Weds and set to snap a bruising four-day skid