Record-low mortgage interest rates powered a surge in refinance activity in agency mortgage-backed securities platforms during the second quarter of 2020, according to a new Inside Mortgage Trends analysis.
Fannie and Freddie issued a staggering $880 billion of single-family MBS during the first half of 2020, up 78.5% from the first three months of the year. Volume peaked in June as refi activity continued to surge.
Retail platforms benefited the most from a huge increase in agency refinance business from the first to the second quarter. First-time buyers held on in a precarious housing market. (Includes two data charts.)
Banks and thrifts reported significant declines in mortgage originations and loan sales during the first quarter of 2020, but they ended the period with a huge pipeline of pending secondary-market activity. (Includes data chart.)
With one big exception — Freedom Mortgage — correspondent platforms saw declining production of FHA/VA loans in the first quarter. Retail was fairly steady, while wholesale-broker gained momentum. (Includes data chart.)