The Fed is allowing its holdings of agency MBS to run off and many other big players in the MBS market appear to be close to tapped out.

MBS trades slipped in April as markets digested the latest tariff and budget machinations of the Trump administration. MBS prices are going nowhere but MSR values continue to increase.

Joseph Gormley, the recently-appointed executive vice president of Ginnie Mae, said foreign interest in Ginnie securities might soon come from beyond the typical investors.

The Trump White House wants the Fed to cut rates but with employment healthy and U.S. deficits growing larger, that’s not likely to happen. One casualty: MBS prices.

Portfolio holdings at the government-sponsored enterprises declined across the board during the first quarter of 2025. On an annual basis, Fannie Mae increased its holdings of MBS while Freddie Mac’s mortgage holdings increased. (Includes data table.)

The company said that despite recent volatility caused by tariffs, it will continue to make additional loan purchases.

MBS trading increased in March, but not dramatically. Still, concerns persist, including Treasury yields bucking historical norms. Ginnie Mae delinquencies are also an issue.

JPMorgan Chase is marketing a prime non-agency MBS with a payment structure typically only used with expanded-credit MBS. Fitch applauded the move.

MBS exempt from Maryland licensing requirements after all; Progress Residential scraps planned single-family rental securitization; ICE offers anonymous requests-for-quote for MBS sales.

At March 31, Dynex owned $8.4 billion in MBS compared to $7.5 billion at Dec. 31.