The private-label and agency mortgage-backed securities (MBS) markets, primary sources of liquidity for many mortgage lenders, are taking a beating so far this year. The question is, how bad will it get?
The institutional single-family rental (SFR) market has expanded rapidly over the past decade as an alternative to homeownership, but it is now facing major headwinds in the form of a rapid jump in interest rates and still-high inflation compounded by decelerating home prices and rental rates. The institutional single-family rental (SFR) market has expanded rapidly over the past decade as an alternative to homeownership, but it is now facing major headwinds in the form of a rapid jump in interest rates and still-high inflation compounded by decelerating home prices and rental rates.
A major lawsuit, a sluggish securitization market and a shortage of housing for-sale are among the woes plaguing SFR, a sector that only last year was seen as a Wall Street darling.
MSR trading volume this year is on pace to meet or exceed last year’s robust mark, when some $1 trillion in MSRs exchanged hands then fueled by the spike in interest rates. The trading volume of MSRs so far this year is on pace to meet or exceed last year’s robust mark, when some $1 trillion in MSRs exchanged hands then fueled by the spike in interest rates.