Oddly enough though, last week’s rate dive was beginning to reverse somewhat, with loan officers reporting higher mortgage rates being offered every day this week.
Subservicing vendors continued to make gains in the fourth quarter as the appetite for outsourcing grew. In short, some MSR owners just don’t want to deal with the hassle of loan processing and regulations. (Includes data chart.)
The the spike in refi activity has “meaningfully” increased the pricing power for originators, said KBW. The research firm said gain-on-sale margins from secondary market loan sales should be exceptionally strong.
Mortgage loan officers should take one last look at their loved ones because if the 30-year fixed-rate vanilla mortgage falls below 3.0% they’ll be living at the office as new customers pour through the door (or Internet) like a zombie apocalypse…
Bond market guru Jeff Gundlach: “Treasuries are no longer a place where you can make money. Treasuries are where you go when you don’t want to lose money.”