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Persistently high mortgage rates will shrink securitization volume by dampening home sales and pushing more buyers toward all-cash purchases.
Super senior tranches benefit from credit enhancement of 15.03%, KBRA said. Senior notes that are not interest only—A19 through A25—benefit from credit enhancement levels of 8.20%.
Zillow now predicts mortgage rates to end 2026 over 7%.
The latest leg higher came as elevated energy prices added to inflationary pressures and corporate new issues weighed on the market.
A fresh jump in oil prices on Thursday lifted five- to 30-year Treasury yields to new multiyear highs in choppy U.S. trading, with the 30-year rising as much as seven basis points to 5.47%, its highest since 2004.
