Timothy Mattke: Geoff, I think I’ll start, Tim, I mean, I’ll have to think a little bit more and probably won’t be able to answer it as precisely as the question. It’s obviously — it’s something we think about. I mean, from an overall standpoint, it’s obviously fair to say that the mark-to-market LTVs have continued to improve and are probably sub-70% to the end of the year. The way we think about it, though, is there’s good home price appreciation for a good chunk of our book, especially before interest rates started to rise. The back half of ’22 is probably somewhere around 10% of our in force. So that feels like it’s got — doesn’t have the same embedded home price appreciation in it. And so it really feels like you’re looking at 2 different sort of groupings of loans to a certain extent that could respond a little bit differently depending upon home price path, unemployment.
But all of it underlying is, again, we’re in a business where when home prices if they decline and if there is unemployment challenges, those confer losses. I think to your point, built-in equity helps mitigate that. And so we feel really good about having built in equity in a lot of our book of business because that goes a long way towards not only reducing severity on anything that would come in, but also, quite frankly, reducing incidents because it will now return into a claim because there’s other ways to resolve of homeowner not being able to pay their mortgage.
Geoffrey Dunn: Okay. And then just last question. Nathan, was the incident rate unchanged at 8% this quarter? And can you also provide your average new money yield?
Nathaniel Colson: Yes, there was no change in the new notice claim rate. And then I’m sorry, Geoff, the second part of the question, are you referring to the investment portfolio?
Geoffrey Dunn: Yes. I’m sorry, new money yield on investments.
Nathaniel Colson: Yes. So in kind of the noncash portion of the portfolio and the core investment portfolio was more like 5.5%.
Operator: And our next question comes from Eric Hagen from BTIG.
Eric Hagen: Curious if you would say there’s any meaningful catalyst away from lower mortgage rates, which could lead to lower persistency and, call it, the near term. And in that near term, do you think we could get a nice pop in housing demand, especially from first-time buyers if mortgage rates fall even just a little bit.
Timothy Mattke: Yes. I think from a persistency standpoint, we’re at 80% now. I think run rate is higher than that. It could get into the low to mid-80s, that is what we would say. From a refi, if rates go down, there’s just not a lot of loans that have been done that would be sort of in a range that would be want and willingness to refi. So I think there could be challenges to that persistency, but not — I don’t see a lot in the — especially in the very short term here because you’re really talking about our portfolio in the back half of the year, which I said was — is probably 10% of our overall in-force that might have some ability if rates drop down closer to 5% as an example, but not a lot of built-up equity at that point either. So I think that’s something that we feel good about the persistency of the book running forward. And Eric, remind me the second half of your question.
Eric Hagen: Demand for housing, especially from first-time buyers on the back of lower mortgage rates.
