Booming MBS Issuance and Uptick in Interest Rates May Mean Stellar 3Q Earnings for Fannie and Freddie
September 22, 2016
Thanks to booming originations the past few months – which should translate into higher guaranty fee income – Fannie Mae and Freddie Mac are likely to post their strongest profits of the year in the third quarter, according to interviews conducted by Inside Mortgage Finance this week. But it’s not just higher loan production that should allow profits to soar – it’s the fact that the yield on the 10-year Treasury now stands at 1.69 percent, 21 basis points higher than June 30. The 10-year rate is...