You thought rates would be falling by now, causing the MBS you own to spike in value. Right? It didn’t work out that way, but it might now. Advice: Bet on a rate cut from the Fed by the fall.
Originators hate rising interest rates for the impact it has on production, but owners of servicing rights and their dealmakers couldn’t be happier. One benefit in today’s market: MSR bid prices are strong.
The malaise surrounding residential lending continued in the first quarter. The expectation is that nonbanks will continue to snatch market share from the big boys, but profitability will remain elusive.
Waiting for the Federal Reserve to cut interest rates is a bit like waiting for Godot. It seems as though a cut in rates may never come. Still, there is some improvement in volumes and margins in the non-QM sector.