Ginnie Mae saw a huge increase in rate-term refinance business, but the cash-out market also gained ground. Freddie led its rivals in attracting more first-time buyer business.
A sharp increase in the securitization rate of nonprime and expanded-credit mortgages was partly due to seasoned loans and GSE-eligible mortgages. Agency securitization rates were sluggish.
Fannie posted the biggest increase over April MBS volume, while Freddie lagged behind. Purchase-mortgage business is on track for another annual climb.
Production of new MBS and ABS fell in almost every category during the first quarter of 2019, but several markets showed rebounding volume in March, a new Inside MBS & ABS analysis shows. Preliminary estimates indicate that a total of $310.04 billion of MBS and ABS was issued in the first three months of 2019, a 10.3% decline from the previous three-month period. It marked the softest quarter in new issuance since the April-June cycle ... [Includes three data charts]
The difference between the weighted average coupon on Fannie Mae and Freddie Mac MBS soared to an average of 10 basis points in January, with Fannie pools showing consistently higher spreads. According to a report by Wells Fargo Securities last month, the wide gap may be because Fannie is offering sweeter guarantee-fee buy-up/buy-down deals to some issuers.
The average daily trading volume in agency MBS totaled $229.9 billion in February, an 8.5% sequential decline from the previous month, according to figures compiled by the Securities Industry and Financial Markets Association.
Real estate investment trusts increased their holdings of agency MBS during the fourth quarter of 2018, capping a solid year of growth, according to an Inside MBS & ABS analysis. [Includes one data chart.]
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