Mortgage Banking Revenues On the Rise

First quarter results are in and banks saw big gains in mortgage banking revenues and profits on the back of strong refinancing activity.  Part of this is due to the spreads between the mortgage rates and mortgage backed securities being twice their normal.  This is good for the banks to help them get on more sound financial footing but some would argue that mortgage rates, already below 4%, should fall even more.  With rates so low as they are, most would prefer the financial system get on more sound footing rather than have lower borrower rates which would have minimal effect on the monthly payment.