PennyMac Financial Services admitted its second quarter results failed to meet expectations because of high interest rates, as well as funding the technology initiatives in artificial intelligence and automation. Pennymac is seeing "a perfect storm," where it is investing a lot in the future with technology, combined with high interest rates, affecting its results, Spector said. The correspondent business had $22.3 billion of acquisitions for both its own account and for sister company PennyMac Mortgage Investment Trust. Kyle Joseph, an analyst at Stephens, lowered his estimates on Pennymac for not just this year, but for 2027 and 2028 as well, because of the second quarter results. For Pennymac, the change follows weaker than expected second quarter results and to reflect the impact of higher interest rates.