Mortgage firms issued $26.2 billion of Government National Mortgage Association-backed bonds in February, a 25% decline from the prior month, and a sign that higher rates are impacting loan volumes.
The agency's February report shows that monthly issuance of Ginnie Mae I single-family pools fell 40% from January to $7.6 billion in February.
Issuance of Ginnie Mae I and Ginnie II single -family pools totaled $25 billion during the month. Mortgage firms issued $1.2 billion of Ginnie Mae multifamily MBS.
Ginnie Mae bonds are backed by Federal Housing Administration, Department of Veterans Affairs and Rural Housing Services loans.
Although higher rates hurt production in January and February, rates fell in early March and some lenders are reporting an increase in applications compared to those two months.
