A combination of fast-rising home values and the fact that nearly two-thirds of borrows with at least some home equity have mortgage rates below 4% and would not benefit from refinancing is helping to propel a resurgent market for home-equity lines of credit (HELOCs).
The common theme in the earnings results for both REITs is the impact of fast rising interest rates and general rate volatility on their residential mortgage holdings and operations.
The latest non-QM player to feel the pain of the interest rate volatility afflicting the nation’s housing market this year is a Pasadena, California-based real estate investment trust called Western Asset Mortgage Capital Corp.