Annaly Capital Management’s net income declined by nearly 20% from the third to the fourth quarter and AGNC Investment took a loss as agency MBS values fluctuated due to actions by the Federal Reserve.
Borrowers with loans in various types of MBS and ABS could be stretched as interest rates increase, according to industry analysts. Prepayment rates are also likely to slow.
Overall, mortgage delinquencies at the end of 2021 had returned to levels seen before the pandemic. Serious delinquency rates are elevated compared with the days before the coronavirus. (Includes data chart.)