Eight expanded-credit MBS hit the market this week, with a total unpaid principal balance of $3.38 billion.

A decline in interest rates on mortgages helped to prop up home sales during the partial shutdown of the federal government.

The request came from the CRE Finance Council, the Mortgage Bankers Association and the Securities Industry and Financial Markets Association. The groups said the disclosure requirements have negatively impacted the commercial MBS market.

Certain MSR buyers have been willing to pay lofty prices in recent years, hoping to recapture borrowers when interest rates decline. There are some questions about whether the moves will ultimately be profitable.

Among a group of servicers with $5.45 trillion in volume, the delinquency rate declined across all late categories during the third quarter. (Includes two data tables.)

Low volatility and actions by the Federal Reserve are expected to help maintain demand for MSRs. Supply will also be constrained, with lenders generating profits and large firms retaining their MSRs.

dv01 attributed the increase in impairments to the partial shutdown of the federal government.

MBA projects that the average interest rate for a 30-year fixed-rate mortgage will increase from 6.3% in the fourth quarter of 2024 to 6.4% in the first quarter of 2026, and then remain at 6.4% through the year.

The Mortgage Bankers Association called for the full Senate to quickly confirm the nominees.

Earnings were helped by a surge in loan applications that locked in September.