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.

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.

Demand for MSRs among investors remains steady even as declining interest rates lead to lower valuations for the assets. The supply of MSR for sale could also increase as lenders originate more mortgages.