Thanks to the spread of the coronavirus, markets became unglued this week as stock prices plummeted. Meanwhile, Treasury yields fell while mortgage rates actually increased. Confused? Welcome to the club.

Industry-wide holdings of residential MBS were steady in the fourth quarter, but several REITs shifted their focus to non-agency MBS and other investments. (Includes data chart.)

Since the financial crisis, the Fed’s main policy tool has been to lower interest rates by purchasing Treasuries and agency MBS. However, with rates on these securities at record lows, this strategy may no longer work.

Freddie has priced in excess of $8 billion in multifamily CRT so far in 2020 while Fannie has added more than $10 billion of MCIRT.

Freddie Mac saw a much bigger decline in monthly volume than Fannie Mae and Ginnie Mae. February issuance suggests a tapering in refinance demand. (Includes two data charts.)

Rates have fallen to historic lows, with MBS values rising. However, as the weekend approached uncertainty prevailed. The wild card: prepayment speeds.

Cherry Hill, a Freedom Mortgage-affiliated REIT, likes the non-QM market but isn’t ready to jump in the pond. Maybe in 2021?

The New York Fed performed two separate repo market maneuvers on Tuesday: a $100 billion overnight operation and a $20 billion 14-day assignment. Both were oversubscribed.

It was a wild ride (down) in the stock market this week, thanks to economic fears tied to the coronavirus. Of course, bonds soared and rates tanked. MBS implications?

The issue of allowing nonbanks into the FHLB System hasn’t gone away. A new RFI on the concept will undoubtedly ruffle some feathers.