The SPDR S&P Bank ETF fell 0.40% on February 11 as investors weighed signs of slowing housing activity. The ETF’s decline highlights sensitivity to mortgage lending trends, with market participants bracing for reduced origination volumes and tighter gain-on-sale margins across major lenders.

Zillow reported fourth-quarter revenue of $654 million, up 18% year-over-year, while adjusted EPS of $0.39 missed the $0.40 consensus. The company backed its outlook with first-quarter sales guidance of $700 million to $710 million, yet its shares plunged over 18%, underscoring investor concerns about near-term profitability and housing demand.

Rocket Companies shares declined 8.42% after Zillow’s earnings unveiled softer-than-expected profitability. As one of the largest U.S. mortgage originators, Rocket faces pressure on origination volumes, refinance demand and gain-on-sale spreads, prompting traders to reassess growth forecasts and risk exposure in mortgage lending.

The selloff in Zillow and Rocket Companies triggered broader selling pressure in mortgage-sensitive sectors, dragging bank and financial ETFs lower. Investors are now focused on home price trends, transaction volumes and interest-rate forecasts to gauge future mortgage origination activity and the potential for margin compression across lending platforms.