MSR values on new loans have stabilized. Mortgage rates are fluctuating within a general range of between 6.75 and 7.00 (CF30), and as a result, prepays have stabilized. There remains, however, a sensitivity issue.  As rates increased to today’s levels, there is a recognition that there is more room for them to drop.  The downside risk of a 3.50% mortgage is negligible. That is not the case when rates hit 7.0%. The takeaway = this riskiness has to be factored into the valuation.