Securitization rates held steady in the second quarter for conventional-conforming as well as government-insured mortgages. In the non-agency market, demand from MBS investors declined. (Includes data table.)
The Structured Finance Association warned that if servicers incur uncompensated expenses for a lengthy period it would decrease the value of mortgage servicing rights.
It’s been a quiet year when it comes to new stock issuance from mortgage REITs. But thanks to the Fed trimming rates by 50 basis points, with another 50 bps in cuts expected, activity could pick up markedly.
Falling interest rates are never good for the value of mortgage servicing rights. But with so many MSR owners keeping their 3% to 4% rights of 2020 and 2021 and selling the rest, marks for the third quarter of 2024 could be benign.