The pace of new mortgages delivered into the agency MBS market slowed modestly in May, an early indicator that the primary market is softening as well. Total monthly MBS issuance by Fannie Mae, Freddie Mac and Ginnie Mae dropped in January and continued to decline through the end of March, according to the Inside Mortgage Finance MBS Database. After starting the first month of 2006 with $82.26 billion in volume, agency MBS issuance slipped… [Two data tables included]