Rising mortgage interest rates are crushing the refinance market and creating headwinds for a struggling housing market. Agency single-family business in the second quarter sank to a three-year low. (Includes two data charts.)

At the direction of the FHFA, the GSEs significantly increased LLPAs for high-balance and second-home loans starting with April deliveries.

The share of high-balance loans and mortgages on second homes sold to the GSEs fell significantly in April, when Fannie and Freddie raised loan-level price adjustments for these loans. (Includes three data charts.)

Originations of first-liens fell 27.1% from the fourth quarter, affecting securitization rates...

Banks’ trading account assets are reported at fair value. When rates increase, MBS suffer value declines.

The timing lag between primary market originations and MBS issuance led to a sharp increase in securitization rates in the first quarter of 2022. (Includes data chart.)

Bank holding companies reported a hefty 17% decline in the value of MBS in trading accounts during the first quarter. ABS and commercial MBS investment was up slightly. (Includes data chart.)

Nonbanks experienced a 27.8% decline...

Nonbanks still accounted for 66% of first-lien mortgage production by the top 100 lenders in the first quarter, but depository institutions in the group managed to up their share slightly. (Includes two data charts.)

It marks the first time quarterly repurchases topped the $1 billion mark since the second quarter of 2014.