When interest rates on mortgages increase, potential borrowers put more effort into shopping for a loan, according to a study by the Federal Reserve.

Sales of new homes increased by 13.9% in July, marking the highest jump since 2006, according to HUD.

PennyMac continued to lead nonbanks in profitability, generating a hefty $475.7 million in net income on its mortgage banking operations for the second quarter. Mr Cooper bounced back from a first-quarter loss while New Residential made strides toward recovery. (Includes data chart.)

Quicken Loans’ parent, Rocket, has revealed a $950 million revolving credit facility, with Chase serving as the administrative agent on the deal.

The second quarter of 2020 generated the strongest profits from mortgage banking that the banking industry has seen in years. MSR accounting issues were a drag, but production volume and margins soared. (Includes data chart.)

On Thursday, Rocket Companies, the parent of Quicken Loans, will debut on the NYSE. If warmly received, the mortgage IPO could pave the way for other deals.

The parent company of Quicken Loans splurged $905 million on marketing last year, helping the nonbank become the second largest mortgage lender. The firm is now ready to launch an IPO.

The book just closed on the second quarter, and it appears that many nonbank originators closed more loans than they did in 1Q20.

The nonbank took a large loss in the first quarter and halted production. Officials at the firm are now betting on originating GSE-eligible mortgages through call centers to return to profitability in the third quarter.

The first quarter of 2020 marked the lowest bank earnings on mortgage banking activity since the financial crisis. A big part of the decline came from steep losses at Fifth Third and Bank of America. (Includes data chart.)