“I would characterize trades these days as being more strategic than necessary,” said Nick Letica, chief investment officer at Two Harbors Investment.

Figure generated $89.8 million of net income in the third quarter, well beyond the $29.4 million in income the company had in the first half of the year.

Rate-term refi deliveries to agency MBS more than doubled on a monthly basis to $25.37 billion in October.

Compared with a year ago, applications for purchase mortgages were up more than 30%.

If the GSEs continue the long-term path of reducing the size of their portfolios, that’s not necessarily attractive for potential investors in a capital raise by the GSEs.

“Many prospective homebuyers are watching the news of weakness in the economy and are carefully monitoring their own economic situations,” said Lisa Sturtevant, chief economist at Bright MLS.

Production and sales revenue lifted mortgage-banking income at a number of banks in the third quarter.

Homebuilders and lenders balked at the standards.

“This would be great for consumers and the safety of the mortgage market, to have both FICO 10T Score and Vantage Score 4.0,” FHFA Director Bill Pulte wrote on X.