Cash-out transactions still account for most agency refinance activity, but August brought a surge of rate-term refis into agency MBS, with the biggest increase in the Ginnie Mae market. (Includes two data tables.)
The outlook for Fed action is largely positive for MBS investors, with interest rate volatility expected to decline. Still, rate cuts will introduce a risk that has been limited for years: prepayments.
AGNC Investment gained some ground on REIT-leader Annaly Capital Management in the agency MBS sector. Industry holdings of non-agency MBS and whole loans fell in the second quarter. (Includes two data tables.)