Federal Housing Finance Agency (FHFA) reports mortgage finance delinquency rates holding at 0.62%, a historically low level. This metric supports bullish outlooks on agency MBS performance in the next quarter. Even with the drop in 30-year fixed rates, adjustable-rate mortgages (ARMs) have maintained a sizable share of new borrowing and the highest since 2008. ARMs currently offer initial rates that are about 0.50% to 0.75% lower than rates for comparable fixed-rate mortgages, though that spread is far narrower than the roughly 2% lower available just a few years ago. Still, longer fixed periods of five to seven years before a reset provide borrowers with more protection against shorter-term volatility. As you approach retirement, Hemphill recommends simplifying your finances versus making them more complex. “You should not seek out an adviser to help put in place this complex and probably unprofitable transaction. On the other hand, you might benefit from working with a fee-only adviser who can help you better understand your own finances and to construct a tax-efficient transition into retirement,” says Hemphill. With mortgage servicing rights (MSR) values up 1.2% last month, major servicers in the mortgage finance industry could see improved balance sheets, enhancing dividend potential and capital deployment flexibility.