MSR Market Monthly Updates
As the leader in capital markets software and services, MCT has continued to stand out with its educational value for clients and the public. By providing a multitude of software solutions and services as well as educational resources, MCT has shown its dedication to assisting individuals in the capital markets. MCT’s MSR team perpetuates this drive to educate and assist by informing the public on the monthly market MSR update happenings. Read below the most recent MSR Market Update!
MCT’s Latest MSR Update:
MCT’s MSR Team encourages clients and non-clients alike to stay updated on all the current, ever-changing trends in the MSR market.
Read the latest MSR Monthly Update below or scroll further to see previous updates.
The Fed has announced another 25 basis points reduction in the overnight rate after their December FOMC meeting. The reduction was in line with what the financial markets were expecting. The surprise came when the Fed announced that they will only reduce rates twice during 2025 and not the anticipated four times as they have previously indicated.
All MSR Monthly Updates
The financial industry is awaiting the much-anticipated rate announcement by the Fed after their December FOMC meeting. The market is expecting the Fed to lower the overnight rate by another 25 basis points. The 10 Year Treasury rate has risen sharply during the month of November heading towards 4.50% which most economists deem risky for the economy.
Click to read the most recent MSR Market Update! – Here we go again! Mortgage rates and all other rate indices continue their roller-coaster ride quarter after quarter. After so much anticipation of lower mortgage rates to remain throughout the rest of 2024, rates took a sharp U-turn and are back up about 68 basis points from their lows on September 30, 2024. The current rates reversal is significant since it took such a short time to get to back up to the same point where market rates were just three months ago. Click to read the full market update!
Click to read the most recent MSR Market Update! – Finally, inflation data signals that the Fed’s anticipated rate reduction action is coming very soon, and probably during their meeting in September. Mortgage rates have already dropped by about 48 basis points since July 31, 2024, and 65 basis points lower since the end of Q2. The industry has already experienced some robust refinancing activity since July 2024 which could continue as the market awaits the Fed’s announcement. The real estate industry is anticipating robust mortgage/housing activity once the Fed’s announcement becomes a reality.
Click to read the most recent MSR Market Update! – The Fed’s recent announcement indicated no changes to the current Fed Funds rate, hence opening the possibility for a rate decline during their next meeting in September. It appears that the market has already built a 25 basis points decline in the mortgage offerings as we observe continuous easing in the 10 Year Treasury rate and the entire yield curve. As of July 31, 2024, the 30-year primary mortgage rate has retreated by 15 basis points while float income rates have declined by an average of about 45 basis points.
Click to read the most recent MSR Market Update! – Mortgage rates and other rate indices have managed to remain at relatively about the same level as they were at the closing in the month of May. Mortgage rates managed to end the month of June with a marginal increase of about three (3) basis points, while float income rates decreased by about eight (8) basis points during the same period. MSR portfolio holders should expect values to remain about the same level as they were at the end of May results. However, those levels could vary depending on portfolio vintages and other portfolio characteristics such as agency and GNMA mix. The downrate risk and its potential impact on MSR values continue to persist as we navigate through the balance of 2024.
Click to read the most recent MSR Market Update! – Mortgage rates and some rate indices have experienced a slight retreat from their end of April highs, closing the month of May with robust gains over end of Q1, 2024 levels. Mortgage rates managed to end the month of May with a decrease of about thirteen (13) basis points, while float income rates decreased by about the same amount during the same period. MSR portfolio holders should expect a moderate value decline in the range of one to four (1-4) basis points from the end of April results. However, those decreases will vary depending on portfolio vintages and other portfolio characteristics such as agency and GNMA mix. The downrate risk and its potential impact on MSR values will persist as we navigate through the balance of 2024.
Click to watch this video and see what David Burruss has to advise on bulk MSR sales. – In this video, Mr. Burruss discusses industry trends and answers the questions that the majority of clients are currently asking him. Watch the video to hear his summary and advice on the current market.
Click to read the most recent MSR Market Update! – Mortgage rates and some rate indices have experienced a healthy recovery from their lows recorded at the end of February, closing the month of April with robust gains over their end of the year levels. Mortgage rates managed to end the month of April with an increase of about fifty-two (52) basis points, while float income rates have increased by an average of thirty (30) basis points since the end of March. MSR portfolio holders should expect a moderate value recovery in the range of two to six (2-6) basis points from the end of March. However, those increases will vary depending on portfolio vintages and other portfolio characteristics such as Agency and GNMA mix. The downrate risk and its potential impact on MSR values will persist as we navigate through 2024.
The economy continues to heal from the pandemic and MSR pricing has seen improvement as a result. Many servicers are still sitting on large portfolios as a result of MSR multiples/prices going to zero in early 2020, but the market is becoming ripe for MSR bulk sales and there is ample capital/liquidity from buyers ready to purchase. Continue reading below for our Top 5 Takeaways for the Bulk MSR Market.
