HECM endorsements fell by 6.1% to 2,481 in February, an improvement from previous years but still lower than January figures. RMI commenters noted the nuances of the current rate environment, including the role of the 10-year CMT and its stabilized levels compared to higher rates previously experienced. Jon McCue, RMI’s director of client relations, emphasized that the impact of rising rates is less severe now than before, except for HECM-to-HECM refinances. Analysts suggest that we are adjusting to a 'new normal' with smaller endorsement impacts related to rate rises.
It may not be what you think, as the 10-year CMT... is higher now than at either of those prior years, but it has more or less leveled out.
The only segment truly impacted by rate increases... is HECM-to-HECM refinances... we are seeing business starting to figure out the current rate environment.
This just continues to prove that we are probably in more of the new normal... the rise in rates are having smaller impacts on endorsements than the prior couple of years.
2023 and 2024 started off very weak. Issuance in the first half of the year has...
If we would have had the two or three extra days like any other month, the drop may not have even been what it was.
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