MSR Index: November 2025

MSR values on newly originated loans leveled off this month, indicating a period of stability after recent fluctuations. Prepay activity was mixed across the coupon stack.

Prepay speeds increased slightly on current-coupon loans and those with lower coupons, suggesting modestly higher borrower activity in those segments. In contrast, higher-coupon loans experienced material increases in prepay speeds, reflecting stronger refinancing incentives or other factors accelerating paydowns.

Overall, this month’s performance highlights a divergence in prepayment behavior: stability in MSR values, mild movement at the lower end of the coupon spectrum, and more pronounced speed increases among higher-coupon cohorts. This mix underscores the importance of monitoring borrower incentives across coupons as rate conditions continue to evolve.

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