Why did PFSI's earnings decline throughout 2024?

PFSI's earnings decline throughout 2024 can be attributed to **Revenue Decline** and **Interest Rate Volatility**. 1. **Revenue Decline**: PennyMac Financial Services Inc. reported a decline in revenue throughout 2024, with the total revenue recorded at $1.59 billion for the year ending December 31, 2024. This represents a decrease of 21% from the previous year's revenue of $1.59 billion. The decline in revenue can be attributed to various factors, including competitive pressures and the impact of interest rate volatility on the mortgage market. 2. **Interest Rate Volatility**: The fluctuating interest rates have had a significant impact on PennyMac's financial performance. With the Federal Reserve raising interest rates throughout the year, mortgage demand has been affected, leading to reduced origination volumes. This is because higher borrowing costs deter refinancing activities and new mortgage purchases. As a result, PennyMac's origination segment faced challenges, which, coupled with the competitive pressures, contributed to the overall decline in earnings. In summary, the decline in PFSI's earnings throughout 2024 can be attributed to a combination of revenue decline and interest rate volatility. These factors, coupled with competitive pressures, have impacted the company's financial performance, leading to a decrease in earnings.