Limited earnings potential from originations and ongoing consolidation are likely to keep the supply of MSRs at healthy levels, according to officials at Annaly Capital Management.

Carrington led MSR buyers in the first half of the year, focusing on loans with lower coupons. Bayview Asset Management ranked second, targeting mortgages with interest rates above 6.0%.

MSR investors continue to offer strong bids for both low-coupon and current-coupon assets. Some MSR owners are also adjusting their risk tolerance as volatility in the financial markets has been constant during the Trump administration.