Home prices have come untethered from rent, which could be a sign of “irrational exuberance,” according to economists from the Federal Reserve Bank of Dallas.
The reputation of being a safe, liquid asset adds about 47 basis points to the “convenience premium” of agency MBS over investment grade bonds, according to the National Bureau of Economic Research.
Although Fannie Mae and Freddie Mac are animals of the secondary market, the FHFA director said they have programs that can increase the amount of housing available.
The government-sponsored enterprise priced a CAS REMIC deal that was delayed last month. It also executed two CIRT transactions on approximately $50 billion in mortgage loans.