Mortgage Finance Weekly "Applications Ease, Non-QM Demand Holds Firm, an..."

Research evidence excerpt

Mortgage Finance Weekly "Applications Ease, Non-QM Demand Holds Firm, an..."

Global Research

26 June 2026ab

Mortgage Finance Weekly Equities

AmericasApplications Ease, Non-QM Demand Holds Firm,

and Agency mREIT Book Values Rise QTD Diversified Financial

Marissa Lobo

Analyst

marissa.lobo@ubs.com

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

Treasuries) tightened by approximately 3 bps week over week (Thursday to

Cory Johnson

Thursday) to 106 bps. This level is 19 bps tighter than March 31 and stands 25 bps

Associate Analyst

inside the long-term average. CRT spreads were broadly unchanged over the last cory.johnson@ubs.com

two weeks but remain approximately 25 bps tighter over the quarter, with the +1-212-882 0078

greatest tightening observed across the 2021-2024 vintages.

The MOVE Index, a gauge of implied Treasury volatility, declined to 67.1 during

the week, roughly 29 points below its March 31 level. After peaking at 115 on

March 26, volatility has trended lower, moving into the mid-60s range by April.

Mortgage Applications: The MBA purchase index (seasonally adjusted) declined

-0.6% week over week (off a 3.4% decline last week), running +2.7% year over

year. The refinance index (NSA) declined 7.3% on the week. The primary rate

increased by 4 bps to 6.52% rising for the third time in four weeks though still well

below the 6.84% recorded a year ago.

Non-QM Issuance: The week featured seven non-QM RMBS transactions totaling

approximately $3.4 billion of collateral, highlighting the continued strength of

primary market activity. The robust pipeline reflects ongoing sponsor demand to

term-fund non-QM production amid favorable securitization economics.

NLY's OBX 2026-NQM9 ($1.013 billion+) was the largest deal of the week