JPMorgan Chase's net mortgage banking revenue for the fourth quarter was $1.69 billion, an increase of just 1% over the same period in 2015.

Net production revenue was $183 million, an increase of 49% over the fourth quarter of 2015, but net mortgage servicing revenue was down 24% from the prior year period to $327 million.

Origination volume was $29.1 billion, up 29% from $22.5 billion in the fourth quarter of 2015. Mortgage loans serviced for other investors ended 2016 at $591.5 billion, down from $674 billion on Dec. 31, 2015.

The loan production numbers at both Chase and Wells Fargo (which also reported results on Friday) were above expectations, possibly because borrowers acted to lock in lower interest rates during the quarter, a report from Keefe, Bruyette & Woods said.

Chase's gain-on-sale margin fell to 63 basis points from 91 bps one year prior. The expectation is that across the board, mortgage lenders will be reporting lower gain-on-sale margins for the period, KBW said.