MSR values continued to edge higher in August, reflecting a steady and supportive market backdrop. Prepayment speeds are holding firm, which provides a level of stability and predictability for servicing cash flows. At the same time, discount rates have ticked lower, offering an additional tailwind for valuations.

The combination of steady prepay activity and easing discount rates signals a favorable environment for MSR performance. While the broader rate market remains in focus, the current conditions suggest that servicing assets are positioned to maintain their upward momentum as we head into the fall.

Overall, August was marked by consistency rather than volatility — a welcome trend for market participants keeping a close eye on portfolio performance and valuation shifts.