Recent Rate Plunge Creates a Quandary for MSR Sellers: Hang On or Sell? ‘Flow’ Prices Are Strong at Least
January 29, 2015
The recent dip in interest rates has sellers of mortgage servicing rights questioning whether they should sell into a market of weakening prices or hang on until values firm up. As always, the answer depends on what type of servicing rights a seller is looking to unload in a market where the yield on the benchmark 10-year Treasury is once again nearing its low for the year. With rates low on current production, prices are...