Since the Federal Open Market Committee ostensibly began to let them run off on June 1, SOMA’s holdings of agency MBS have increased by $20 billion.

The former FHFA director said, given the Federal Reserve’s commitment to fight inflation, home prices could fall by double digits in percentage terms over the next few years.

Conservative economist Douglas Holtz-Eakin said the Federal Reserve’s exit from the MBS market is helping drive up interest rates in the affordable housing space. The remedy, he said, is GSE reform.

A new research paper co-authored by officials at the Federal Reserve argues that the public/private nature of the FHLBs has allowed them to engage in activities not expressly foreseen by Congress.

The regulator of Fannie Mae and Freddie Mac is now a member of an organization that says climate change poses a serious risk to the financial system.

The FOMC intends to cut its securities holdings by $523 billion by the end of the year.

The industry veteran asks: If the GSEs lose their largest buyer, where will the money come from to support the 30-year, fixed-rate mortgage?

The FOMC may take significant losses if it opts to sell its low-coupon agency MBS but soaring inflation may make it do so anyway.

The Federal Reserve will close on an era this week, ending its pandemic policy of net asset purchases and preparing for a runoff of agency MBS.

Who will take up the slack when the Fed is no longer the dominant buyer in the MBS market?