As bad as originations were this year, 2023 is projected to be worse. Purchase-mortgage business is expected to decline even as mortgage rates come down and home prices level off.

Uncertainty regarding future actions by the Federal Reserve has dampened investor demand for MBS and ABS. The outlook, too, is negative.

Where are home prices going? Is a recession going to lead to higher delinquencies? Mortgage industry participants are having a hard time answering these questions.

Rising rates are putting pressure on both lenders and borrowers. Meanwhile, with originations constrained consolidations should increase.

Investors that once focused on lower tranches of non-agency MBS are shifting up in credit, seeing just as strong returns from AAA-rated tranches with fewer risks. Investors in agency MBS are also changing strategies as interest rates rise.

Last month new home sales fell to their lowest level since January 2016. Trouble ahead, perhaps?

The most popular option is when another veteran assumes the VA loan and trades the benefit eligibility, said John Bell, executive director of VA’s Loan Guaranty Service.

The share of Ginnie Mae loans in forbearance remained flat at 1.26% in July compared to the previous month.

Lenders want FHA to increase the limit on fees they can charge for processing an assumable mortgage, a product expected to gain popularity in the coming months.

MBA punts on recession forecast; interest rates on mortgages expected to decline; Flagstar merger dragging on; homeowners want mortgage financing for energy improvements.