Mortgage rates are starting to come down a bit, but the first quarter of the new year was a challenge for most. The worst of it, hands down, was January, with February seemingly brighter.

Loans sales by banks and thrifts outpaced originations of mortgages marked for sale for the third consecutive year in 2022. The sales boom looks to be coming to an end as loans held for sale dwindle. (Includes two data charts.)

Retail remained the predominant source of jumbo originations in 2022. Changes in the makeup of the market are expected as Wells Fargo recently exited the correspondent channel. (Includes data chart.)

Lenders originating ARMs weren’t able to buck the broader trend of declining originations in the fourth quarter of 2022. Still, on an annual basis, the ARM share nearly doubled in 2022 thanks to rising interest rates. (Includes data chart.)

There are plenty of fix-and-flip home sales but profitability is starting to slip. Meanwhile, in his new book, Calabria takes a poke at nonbanks.

The mortgage market is losing some capacity as Impac Mortgage and Finance of America move away from traditional production. The moves follow steep losses at the companies in recent years.

Originations of non-QMs and other expanded-credit products increased in 2022 while total mortgage originations declined. Citi was the top expanded-credit producer during the year.

Non-QM lenders and MBS issuers are making adjustments amid a volatile secondary market. Issues include timing for MBS issuance and competition for new production.

Is the worst of the mortgage downturn over? Probably not but there appears to be some improvement. Now, if only interest rates would cooperate.

Phoenix Capital is out with another auction notice on mortgage servicing rights...