Credit ratings and equity researchers are generally moderating their view of public nonbank mortgage companies as earnings get reported, but they foresee outlooks potentially stabilizing if they address certain market changes. The analyses are in line with the fact that while the average Freddie Mac mortgage rate did plateau for a period during the second quarter, it was still generally higher than in the previous fiscal period and has been rising since July. Other takeaways from earningsAlso worth noting is that Fitch's downgrades of UWM's mid-range speculative grade BB-minus to a lower-end B-plus highlight another hurdle related to the "highly cyclical nature of the mortgage origination business" as other production forecasts have fallen in response to rates. Fitch ratings across nonbank mortgage firms have typically ranged from a low-end investment grade ratings of B to BBB, according to an April report a spokesperson said was indicative of broader trends. Fitch's chief concern about UWM in the downgrades is a jump in leverage from 3.2x in the first quarter to 6.1x during the second.