MSR Index: September 2025
MSR values continue their steady climb across most segments, with the notable exception of Ginnie Mae servicing, which has held flat. This upward momentum highlights the ongoing resilience of the servicing market, even in the face of shifting rate dynamics.
Prepayment speeds remain consistent, indicating stable borrower behavior overall. However, there has been a modest uptick in government loan prepays, reflecting slightly higher refinance activity in that segment.
Meanwhile, discount rates have edged lower, suggesting that market participants are adjusting risk premiums and reassessing return expectations in today’s environment.
Taken together, these trends point to a market marked by incremental adjustments rather than dramatic swings: steady MSR gains, mostly stable prepays, and subtle recalibration of discount rates.
Stay Ahead of the Market: At Level1Analytics®, we track these dynamics in real-time to help institutions make smarter MSR and whole-loan portfolio decisions. Want to know what this means for you?
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