Record-low mortgage interest rates powered a surge in refinance activity in agency mortgage-backed securities platforms during the second quarter of 2020, according to a new Inside Mortgage Trends analysis.

However, homeowners have shown little interest in accessing the available equity through cash-outs.

The bulk of non-QM originations come through mortgage brokers and the retail channel.

Finance of America Mortgage funded roughly $5.19 billion in the second quarter, a $1 billion sequential improvement. Other lenders also posted gains.

“We didn’t have as much of a housing shock [even] as we had 20 million people laid off,” said Mark Calabria, director of the FHFA.

The average interest rate on 30-year fixed-rate mortgages could fall below 3.00% later this year, according to Freddie Mac's chief economist.

The share of borrowers in forbearance who continued to make monthly payments fell from around 50% in April to 25% in June.

After a record month of Ginnie MBS issuance in April, volume declined in May and June.

DBRS Morningstar edged out Kroll Bond Rating Agency as the top firm in rating non-agency MBS in the first three months of the year.

“CRT secondary markets have remained open throughout this crisis,” Freddie Mac's Mike Reynolds told Inside Mortgage Finance. “They were dramatically impacted by the COVID liquidity technical, as all markets were, but I think its important for your readers to know that trading still occurred."