Mortgage Finance Weekly "Purchase Apps Slip; Non-QM Deal Issuance Remain..."

Research evidence excerpt

Mortgage Finance Weekly "Purchase Apps Slip; Non-QM Deal Issuance Remain..."

Global Research

22 May 2026ab

Mortgage Finance Weekly Equities

AmericasPurchase Apps Slip; Non-QM Deal Issuance

Remains Robust Diversified Financial

Marissa Lobo

Analyst

marissa.lobo@ubs.com

MBS Spreads: Nominal Agency MBS spreads (current coupon vs. 5/10-year +1-212-713 3922

Treasury) widened 2 bps this week (Thursday to Thursday) to 114 bps, with intra-

Cory Johnson

week volatility. The current spread is 11 bps tighter than 3/31 levels and 17 bps

Associate Analyst

tighter than the long-term average. CRT spreads were mixed on the week (-4 to +5 cory.johnson@ubs.com

bps), with the 2022 vintage performing the best and the 2019 vintage performing +1-212-882 0078

the worst.

The MOVE index (which measures implied volatility in U.S. Treasuries) was

roughly flat week over week at 79.72 after having spiked to a weekly high of

86.07 on Monday. The index started the year in the 57-70 range after peaking at

115 on March 26 with Iran conflict resolutions and dropping to the mid 60s by

April.

Non-QM issuance momentum remains strong into 2Q26, with volumes at or

near record levels and continued investor demand. Overall, AAA new issue pricing

spreads have tightened to the 125-130bps level, indicating spread compression

off March wides, though still above the tightest levels seen earlier in the year.

Ellington (EFMT): AAA prints moved from +115bps in January to +135-145 in

March, before tightening back to +130 with its May 19th deal.

TPG/MITT (GCAT): Deals have priced AAAs in the +125-145bps range, ending

tighter at +125 in May.

Redwood (SPIRE): Priced its second deal in May with AAAs at +130bps, steady

with early March levels.

NLY (OBX): Current pricing also reflects tightening from +140 bps level in late