The Federal Open Market Committee this week announced lower caps for Treasury runoff and a tweak to its MBS activity.

Profits at Fannie Mae and Freddie Mac weathered a steady decline in mortgage purchases and shrinking mortgage holdings. (Includes data table.)

The Fed could start cutting rates in June, according to projections by industry analysts. The Fed is also moving toward slowing the runoff of its holdings of Treasury securities and MBS.

The diversification inherent in MBS may be the ideal tool to combat climate risk in housing finance.

Banks, the largest holders of agency MBS among investor groups, aren’t expected to be big buyers this year. Money managers helped to fill the void left by banks last year, but that might not continue into 2024.

Issuance of GSE Supers MBS remained elevated in the fourth quarter, although down significantly from the previous period. Ginnie remains king of the agency REMIC market. (Includes two data tables.)

The Maxex mortgage platform will now connect originators with non-agency buyers of agency-eligible mortgages for investment properties and second homes.

A look back at prior interest rate cuts by the Federal Reserve suggests that agency MBS outperform competing assets in that environment.

The new Mission Index will be used to determine which single-family MBS can be designated social bonds.

Participants in the MBS and ABS market have widespread concerns about a proposal to adjust capital requirements for large banks. They argue that the proposed capital requirements are unnecessarily high.