Rohit Gupta: Eric, I think what we’ve talked about is given the ongoing macroeconomic uncertainty that we expect to hold PMIER’s sufficiencies probably a little bit higher than we would under maybe more normal times. We’ve talked about holding PMIER’s sufficiencies at or north of 150%. I think if we think about PMIER’s sufficiency over a longer-time period maybe, with the abatement of the macro uncertainty, we’ve talked about PMIER’s levels pre-pandemic, which were closer to 140%. And so over a longer period of time as macroeconomic conditions maybe level off, that gives you a sense of where we might head with PMIER’s sufficiency under different facts and circumstances, different macroeconomic environments.
Dean Mitchell: Yes. I would just add to that, Eric, that I think from a capital return perspective, you said what could lead for it to be higher or lower? I think all our capital return guidance is obviously subject to regulatory approvals and macroeconomic conditions. So, we feel good about our results year-to-date. We’ve delivered very strong performance, as we said in our prepared remarks. But at the same time, we’ll continue to keep an eye on the environment in terms of any regulatory changes, if that happens or any change in the economic environment, whether housing or broadly. But given the fact that we increased our guidance, we feel very good about the guidance we have given for the rest of the year.
Eric Hagen: Yes. that’s helpful. Thank you. Maybe, following up on the conversation around mortgage rates and such, I mean, if rates were to rally 50 basis points or 100 basis points from these levels, how much insurance do you think you can put back on your books in that scenario? And maybe, even more broadly, like do you have any perspective on how MI pricing would potentially behave in response to bigger rallies in interest rates, mortgage rates.
Rohit Gupta: And Eric, just to clarify, when you say rates were to rally another 50 basis points to 100 basis points, you are saying rates actually being higher — 30-year mortgage rates being higher.
Eric Hagen: No, lower.
Rohit Gupta: Lower. Okay, perfect. So, I think if you look at recent months and times when we have actually seen mortgage rates come down to that range. So, let’s say, 6% to 6.5% range, I think that does increase market participation. I will probably offset that expectation with a little bit of housing market dilemma that we have seen over the last year, which is lack of housing inventory. So, I think in an environment, where there are more buyers coming to market, but sellers are still not willing to sell their homes. And this goes back to you love your mortgage and you hate your house that even if you actually want to upgrade your house, but you’re in a 3% mortgage and you can’t find another house in the market that’s attractive to you, you might not actually sell your house.
So, I think we have to work on that dynamic. I’m not sure if I can give you a rule of thumb on how much more business could come to market. We would expect purchase originations to be stronger in that scenario. That could be driven by a combination of some units being higher. But if the supply market is tight, that could also lead to home prices rising again, which would essentially give us higher new insurance written. in terms of how much more we can write or we are willing to write, as Dean pointed out earlier, we are operating with a very strong balance sheet, with a very conservative balance sheet, even at the holding company level. So, we feel comfortable that if the market size was to increase, we have ample capacity and we have ample ability to source third-party capital through reinsurance or insurance linked notes market that we could support a much higher market size and a much higher NIW on our books.
Eric Hagen: Right. That was helpful. Thank you. Hey. did you guys say what the weighted average price was at which you bought back stock last quarter?
Rohit Gupta: We didn’t say it. but since inception, Eric, we’ve bought back shares at $24.30 on that $71 million of share repurchases.
Eric Hagen: Yes. Great. Thank you, guys, very much.
Rohit Gupta: Thank you.
Dean Mitchell: Thank you.
