An unexpected surge in inflation briefly created a “no-bid” moment for agency MBS.

Fannie Mae will publish refi application activity on a weekly basis, helping MBS investors better gauge prepayment trends.

The impact of the Federal Reserve’s balance sheet reduction is expected to be equivalent to a 50-basis-point increase in the federal funds rate.

Portfolio holdings of agency MBS fell mostly due to lower market value for the assets. REITs also recorded a significant drop in TBA investments as agency MBS issuance declined. (Includes data chart.)

Some experts now say Federal Reserve purchases of agency MBS will fall to zero by September.

The Mortgage Bankers Association has asked the SEC to review the margin requirements in Rule 4210, arguing that lenders use to-be-announced securities to hedge their interest rate exposure rather than for speculation purposes.

It could be years before the Fed sells any of its holdings of agency MBS, according to John Williams, president and CEO of the Federal Reserve Bank of New York.

Issuing a non-agency MBS isn’t cheap; trade groups push for data, timeline if GSEs change credit scoring models; Ginnie reiterates its buyout policy.

The Federal Open Market Committee will begin letting agency MBS run off on June 1, but has no plans to actually sell securities.

The market decline, in response to the end of QE, has been severe, but much more orderly than in 2013.