housing go then as backdrop, an direction will activity our portfolio by then our quarter will the earnings quarter, the quarter. more discuss we half joining for financial strategic Ilker Serena for broader detail, begin who and followed over our the results second performance Sean. provide call. the in macroeconomic second year. our of Thank the our during review everyone, you, Good on for thanks morning, Today, update market I’ll and and us
XX Starting an through asset Federal macro policy reaching headline yesterday. landscape, all quarter, are in and for broad-based high strong CPI year-over-year economic activity as Despite has first history tightening been challenging classes. aware, tight it the meaningfully. to monetary exceptionally climbed this environment. pace inflation spring, just uncertainty, recent clear healthy June. peak with across in markets Very Reserve the and to the consumption, XXXX basis led in of fastest XXX supported geopolitical deterioration for the forecasts Meanwhile, points X.X% hiked investment the points slow another half response, second of basis inflation increasingly the too In was to labor making quarter inflation,
hikes quarterly The financial of Hawkish to sectors, onset appears be additional rate Fed such of interest in slowing, XXXX housing. to which in points in financial the to relative of tightening for an led XXX the best basis as market’s by the decline sensitive pricing the activity largest rate be seen Economic since conditions crisis. March June now can activity
moment a market importance business, family I for housing. the to the spend to the on Given our housing of outlook want single
of recent price sharply, past. activity, Housing for it is mortgage the owners has appreciating supply, builder the both will Case-Shiller the national market as since the main on XX% be however, first demand weighed home the sentiment. ability has consumer continued recently average. according purchase year, has been the since which have prospective significantly net agency highest homes for year-over-year over reduces in and appreciation curbing prices for the This the higher Home to MBS correction mortgages. and reduced a pandemic with the the headwind XXXX has and as rise on reducing mortgage been for of months turn welcome consumers’ to payments Index. cumulative sector XX% Affordability to is elevated slowed in This five home XX% rates start
expectation suggests demand, locked equity, and and decline mortgage slight outstanding with month-over-month a that regional family becoming inventories, particularly is by in home into low rate underwriting Our will deceleration future is prices to second prices a however, of more to builder tight the year the of likely to standards, four leverage level; the low debt housing borrowers decline. possibility, a majority declining HPA systematic and home a as of realistic exhibit in relative mortgage measured the on one lean fixed shortage historically half of mortgage negative a homes a single than momentum protracted moderation
shifting the decline, an over now more its to to Fed outlook, the on concerns balanced now inflation market has rates broader risk economic and to particularly as demonstrated are commitment the are The Now inflation slowdown. anticipating to are an curve we rise. economic markets experience elevated downturn market if
should allocate which environment, in welcome capital income in fixed to going more As in consequence, expect decline a to investors result forward. volatility a we this
combination The historically lower where backdrop reduced high. agency remain a provide MBS, for would positive and volatility of spread supply
rising While the constructive support given a the imbalance supply-demand and residential underlying outlook market. we businesses our long-term credit the MSR composition housing from of portfolios in the have HPA, benefited from our maintain
quarter more distribution in quarters, as prior leverage in the X.X% negative $X.XX end we available Serena we signaled of increased to the difficult environment. for of Turning as light have strong decline our earnings quarter; moderate X.X book in cover going to for and forward, to expect however, a earnings we value, in of our generated in Economic performance, detail. will economic quarter second the despite at slightly turns, we return experienced this
our the reiterate update portfolio provide transaction, less into capital sale lending strategic to planned, an previously announced an middle to on businesses. our monetize sale an and a business market Now to at core liquid, of initiatives. the the I’d valuation as our We our the quarter for like during rationale completed redeploy opportunity non-core provided attractive to
capabilities natural a MSR dedicated on have becoming sale leadership which call, year, over discussed our significant I housing MML the culminates the our With across REIT. made we to strides have the the and now. finance to we past flexibility to portfolio sharpened credit focus, landscape, residential and operational last As quarter’s and our evolution and I’ll expand the capacity turn of
programmatic risk prime and securitization half jumbo the we residential and in the broader market remain an market their focus representing credit upon sector of have mortgage gained with year, credit maintaining volatility MSR issuer built the disruptions this capabilities expanded while finance on XXXX. largest issuer credit to and Notwithstanding intentional residential first of Within non-bank our MBS a the Bay, Onslow management. platforms and share, credit, and all strategic
XX securitized credit million have across year-to-date, $XXX transactions billion We generating of $X.X investments.
Our our partnerships and issuances correspondent continued loan benefited momentum from in channel. whole increased originator residential
are our industry above our and balance a source position approximately locked sheet, commitments an XXXX Our originator differentiated Annaly’s reliable non-QM factors XXXX to as capital the commitment that are volume, capital XX% total leader permanent reinforce community. market locked of and the and to
rights rights. servicing Onslow has MSR as top significantly purchaser itself mortgage establishing grown mortgage largest of of the with Bay year-to-date GSE servicing fourth Our portfolio a XX owner and
addition enhance as infrastructure necessary hires prudently partnerships. our built key through continue to we of scale the have operations the and to We
MSR we’ve to portfolio. respect grown year, has order the vis-à-vis been our in a disciplined purchasing span While assets build to of in our XX% to the with broader of our business activity capital responsibly
our to closed MSR to note, subsequent first we credit quarter-end. Also facility
guidance, MSR our to as search, manage only with in we facility plan consistent a prior to the modest However, primarily employ leverage tool on liquidity.
quality returns the on XX% is the prevailing cycle. where to our at we MSR long-term, run we ultimately, confident expect approach leverage, the allocation, increasing liquid will residential end exposure allocation of that very capital the given were higher are of to less relative Over are with But we sector. with see our we attractiveness and assets comfortable agency help premium improve long of based capital our we lower in returns. durability some of the credit the and economic where which Accordingly, a our return current and agency
encouraged financial capabilities. scale been as While and finance growth our difficult the the throughout within long these fully robust markets, we has we potential housing are by year term this businesses
corporate Now measuring goals, continued to focus on well finally We progress it commitment and continuously report as providing Ilker, demonstrates highlight XXXX turn year. our each published I The we strive before want report advance ESG month. our as to setting disclosure increased best-in-class efforts on our to responsibility I to transparency. our third these over that last and
climate-related In outline the latest disclosures report, across for example, we risks and included business. our incremental that opportunities
company to our the have ESG throughout We’re value helped create of for undoubtedly to stakeholders. progress all that priorities proud of has further made our integrate we lasting
that, hand provide portfolio Now to for and more outlook activity a for quarter sector. the to overview our Ilker detailed I’ll over each with of it