MSR Index - October 2024
by Dr Thomas J Healy, CMB, Monday, October 21, 2024
MSR values on new loans went down a bit this month. Rates are up, which drives up the discount rate (resulting in a negative impact on value). Additionally, there is always a market concern, as rates increase, that there is more room for them to drop. The downside risk of a 3.50% mortgage is negligible; that is not the case when rates hit 6.5%.