PFSI - In the Best of Times for Mortgage Originators PennyMac Reports Record Earnings
The COVID-19 crisis has unleashed a mortgage refinancing wave that comes around once every 20 years or so.
When the economy slammed to a halt, the Federal Reserve cut interest rates as a low as it could and began buying up mortgage-backed securities in order to stabilize the market. These measures drove mortgage rates from 3.72% at the beginning of the year to 2.78% now, according to Freddie Mac . Black Knight Financial estimated that almost 75% of the mortgage market could save 0.75% on their mortgage by refinancing.
Who have been the winners so far? One is PennyMac Financial (NYSE: PFSI) , which just reported record earnings.
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In the Best of Times for Mortgage Originators, PennyMac Reports Record Earnings