Money managers added to their holdings of agency MBS for the sixth consecutive quarter as of the first quarter of 2024. That might be the peak in their investments in agency MBS, according to industry analysts.

A decline in interest rates near the end of 2023 drove up refi volume. Meanwhile, purchase-mortgage lending declined slightly on a sequential basis as seasonal factors limited demand. (Includes four data tables.)

Another long-time player is exiting warehouse lending. The twist: There’s nothing wrong with Flagstar’s nonbank business. The problem is that the depository is owned by NYCB, which needed an investor-infusion earlier this year.

Federal banking regulators are still grappling with whether to re-propose a rule on capital requirements for large banks or to move on to a final rule.

Some see Freddie Mac’s proposal to acquire second liens as a way to boost originations of the products. Others suggest that GSE involvement in the sector will have minimal impact as demand from borrowers appears to be limited.

“In short, the agencies tried to do too much,” the American Bankers Association said.

The decline in demand for purchase mortgages was most prominent for FHA mortgages, where applications declined by 9% on a weekly basis.

It’s the fourth securitization of seconds from the nonbank this year.

Home price appreciation in 2024 is expected to be well below the 5.5% annual appreciation seen in 2023, according to Fitch Ratings.

Correspondent sales of government-insured mortgages originated during 2023 declined somewhat on an annual basis, but Veterans United upped its sales by 7.3%. (Includes data table.)