With the refinancing boom over, the mortgage fixed-rate supply should plunge, along with the drop in issuance of 15-year product, analysts said. However, an increase in Ginnie Mae paper and a growing hybrid ARM share are on the horizon.

In a recent report, UBS said that the drop in fixed-rate supply would be particularly significant. The report noted that fixed-rate Agency supply has declined to $83.2 billion in December from $92.2 billion in November, and, even more telling, from $186.8 billion in August. The firm is predicting only $73.8 billion this month and $71.5 billion in February.

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