Dr. Healy’s MSR Market Watch: September 2026

by Dr. Thomas J. Healy, Tuesday, September 22, 2026

Mortgage servicing rights (MSR) values remained relatively stable for newly originated loans in September, despite continued movement in mortgage rates. The latest MSR Index highlights how changes in discount rates and prepayment expectations can have offsetting effects on MSR values and why both remain important factors to watch.
In this month’s MSR Market Watch, Dr. Healy examines the latest MSR multiple trends and the market conditions influencing valuations.

Dr. Healy’s MSR Analysis

There is very little change in MSR values on newly originated loans this month. Rates increased from last month which pushed up the discount rate (negative impact on value) but decreased prepay speeds (positive impact on value). There seems to be a general belief that rates will continue to rise.
September’s MSR market reflects the balance between two important valuation drivers: discount rates and prepayment speeds. While higher rates can put downward pressure on MSR values through higher discount rates, slower prepayment speeds can provide an offsetting benefit.

As rate expectations continue to evolve, monitoring both sides of that equation will remain important for understanding MSR valuation trends.