Thanks to rising interest rates, refinance volume for Fannie Mae and Freddie Mac was down in the first quarter.

Production of non-agency jumbo mortgages declined significantly in the first quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $60.0 billion of jumbos were originated in the first quarter, down 26.8 percent from the previous period. Jumbo production was also off 13.0 percent from the first three months of 2017. The decline in jumbo volume was greater than the slowdown in the overall mortgage ... [Includes one data chart]

cchappell@imfpubs.com Although a stronger economy, wage growth and an improved job market is driving home prices upward in 2018, Lawrence Yun, chief economist of the National Association of Realtors, said a low supply and widespread affordable housing shortage will dampen sales. In his 2018 midyear forecast he said more new housing starts are needed… …

After an extended period of steady growth in its investment in the residential MBS market, the banking industry changed course in early 2018 and reduced its participation in the market, according to a new Inside MBS & ABS ranking and analysis.

Mortgage-backed securities investors remain interested in non-qualified mortgages, though the hot market may be cooling off.

President Trump this week nominated Michael Bright to be president of Ginnie Mae after serving nine months in the post as acting president of the secondary mortgage market agency.

Issuance of the government-sponsored enterprises’ credit-risk transfers has been growing consistently over the last five years, according to Suzanne Mistretta, senior director at Fitch Ratings.

The average daily trading volume in agency MBS inched up to $220.7 billion in April, a stable but weak reading compared to the earliest months of the year, according to figures compiled by the Securities Industry and Financial Markets Association.

The prospects of a legislative overhaul of the housing-finance system this year have diminished considerably, but many have turned to deciphering possible moves by the Trump administration.

The types of investment-property mortgages being included in new non-agency MBS pose more risk to investors than similar mortgages eligible for sale to the government-sponsored enterprises, Fitch Ratings warned this week. [Includes one data chart.]