Ginnie posted a 1.3% quarterly gain in servicing outstanding to $2.726 trillion at the end of March, not including servicing of home-equity conversion mortgages.
The book value for a large group of real estate investment trusts that focus on mortgage-backed securities declined by an average of 5.1% during the first quarter of 2026, according to projections by analysts at Citizens JMP Securities.
“While speculation continues around the potential privatization of the government-sponsored enterprises, Morningstar DBRS does not view any changes to [their] status as likely for the length of the credit rating outlook period given the complexities and potential consequences of such an action, especially considering the current macroeconomic environment,” the rating service said.
Some $8.60 billion of conforming jumbos flowed into GSE mortgage-backed securities issued during the first quarter, an 11.0% decline from the previous quarter.
“The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs and declines for consumer confidence have slowed the market,” said Bill Owens, chairman of NAHB.