Don’t Fight the Fed - Why Now is a Good Time to Sell Mortgages
Selling GSE-eligible mortgages is looking considerably more profitable than it has in years. Lender profitability has skyrocketed according to the Mortgage Bankers Association (MBA) performance data and our experience at ALM First Financial Advisors, helped by both a surge in lending volume and the Fed’s Federal Open Market Committee (FOMC) agency mortgage-backed securities (MBS) purchases.
The Fed’s quantitative easing actions associated with the Covid-19 pandemic have led to a major shift in interest rates. According to Freddie Mac’s Primary Mortgage Market Survey (PMMS), the going rate for a 30-year fixed is 2.67%. That is a record low for the entire history of the PMMS index, which has tracked mortgage rates...