Two of Orange County’s largest homebuilders saw their stock prices jump on Wednesday, thanks to reports suggesting a government-backed bank bailout could take place.
Stocks of most big homebuilders rose sharply Wednesday, following reports that the Obama administration is strongly considering a plan to acquire bad mortgages from banks.
Such a plan could stop the ongoing drop in home values, according to building executives who have lobbied for government intervention.
Irvine-based Standard Pacific Corp.’s stock rose nearly 15% for the day. The company now counts a market value of about $170 million.
Miami-based Lennar Corp., whose operations are largely run out of its Aliso Viejo office, closed up more than 14% on a market value of roughly $1.4 billion.
The gains of Standard Pacific and Lennar on Wednesday mirrored those of other builders, including Los Angeles-based KB Home, Dallas-based Centex Corp., and Red Bank, N.J.-based Hovnanian Enterprises Inc.
