Losses are widely expected for agency MBS investors in the third quarter of 2026. However, the same factors that diminish values of MBS holdings also make new investments in MBS more attractive to investors.

Ginnie Mae and the non-agency MBS sector led residential MBS over the $10 trillion mark in the second quarter. Mutual funds and foreign investors increased their holdings. (Includes two data tables.)

MBS purchase levels at Fannie Mae and Freddie Mac continue to disappoint lenders looking for help with interest rates, though prospects look better for September reporting.