The effects of rising interest rates appear to have hit monthly agency issuance. The Federal National Mortgage Association took the biggest hit.
That turned out to be the slowest month for securitizations of
agency home loans since February 2016, when the total came to $77.267 billion.
eMBS provided the data used in this story to Mortgage Daily.
In the first month of this year, issuance was $131.788 billion.
The plunge in agency issuance has come as 30-year fixed mortgage rates have soared to 4.16 percent in the week ended Feb. 23 from just 3.62 percent a year earlier, according to Freddie’s Primary Mortgage Market Survey.
So far in 2017, issuers of agency MBS have generated $226.104 billion in volume.
Last month’s biggest decline was at Washington-based Fannie, with fixed-rate issuance plunging one-third from January 2017 to $35.418 billion. Fannie’s issuance was up, though, by a quarter from February 2016.
Issuance of Fannie Mae MBS amounted to $88.158 billion in the first-two months of this year.
At the Federal Home Loan Mortgage Corp., February 2017’s fixed-rate issuance fell 29 percent from a month earlier to $26.804 billion but rose 36 percent from a year earlier.
McLean-based Freddie’s year-to-date issuance totaled $64.543 billion.
The Government National Mortgage Association’s fixed-rate rate issuance tumbled 22 percent from January to $32.094 billion. Government-owned Ginnie’s issuance, however, accelerated 10 percent from the same month in 2016.
Washington-based Ginnie’s MBS issuance worked out to $73.403 billion in the two months ended Feb. 28, 2017.