Fannie and Freddie issuance of single-family MBS surged 38.4% from the first quarter of 2023 to $172.31 billion...

Non-agency MBS participants have been working with an outdated data set.

Interest rates on mortgages reached their highest level of the year (thus far).

“What you don’t want to have to do is sell those assets when rates are so much higher because you’re going to take a loss,” Teresa Bazemore, CEO of the Federal Home Loan Bank of San Francisco, said of bank holdings on MBS.

The Fed’s Bank Term Funding Program allows banks to receive loans on favorable terms for the face value of agency MBS and Treasury securities.

Some 66.5% of GSE repurchases in the first quarter involved loans securitized in 2022.

Western Asset Mortgage Capital's investments in residential assets will be sold off, with the capital going toward commercial assets.

Issuance of securitizations with second liens in 2023 has already surpassed the volume seen in all of 2022.

Purchase mortgage application levels are still well below the activity seen at this time last year.

As originations decline, the securitization rate shrinks.