Refinance

With long-term interest rates at historic lows, mortgage refinancing is coming on strong. But that additional revenue may not be enough to offset net interest margin pressures and lost servicing income.

Lower rates will likely sustain higher levels of origination through at least the third quarter, but supply constraints and economic weakness could limit the purchase market's response in the long term.

Mortgage rates remained unchanged this past week even with all of the upheaval in the bond markets that pushed long-term Treasury yields down, according to Freddie Mac.

Mortgage activity fell at the start of the year, but lower mortgage rates are boosting refinance volume, and Generation Z is starting to creep into the housing market, according to TransUnion.

While last week's large drop in interest rates sparked a surge in refinance activity, purchase mortgage application volume increased for the first time in over a month, according to the Mortgage Bankers Association.

There's a silver lining to the recent economic turbulence: Mortgage rates have tumbled in recent weeks, triggering a rush to refinance and a race to the closing table for many Twin Citians.

Mortgage-backed securities investors are looking to the specified pool market to counter higher prepayment speeds seen with loans purchased through the TBA window.

Lower interest rates and improved gain-on-sale margins helped Impac Mortgage Holdings record its first profitable three-month period since the first quarter of 2018.

Rates for 30-year mortgages are at their lowest since late 2016, sending many previously hesitant homeowners to their brokers.

Millennials jumped to take advantage of low mortgage rates by refinancing at an increased share of 6 percentage points in June, according to Ellie Mae.