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Trump Buying $200b In Mortgage Bonds

956 Views | 7 Replies | Last: 2 days ago by dwood21
Sea Speed
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AG
In order to lower interest rates.

Not sure what the actual effect of this will be, but I would love to refi if it works.

lobopride
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Sounds inflationary
12thAngryMan
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Isn't this a fairly small amount relative to the total MBS market? Google says there is $11 trillion of MBS securities outstanding and average daily trading volume of ~$300 billion. Maybe the resident experts can opine if this will be more than a blip (assuming it even happens at all).
Red Pear Realty
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2025 MBS originations are expected to be around or slightly over $2 trillion so $200B of purchases would definitely have an effect on rates.
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dwood21
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Refinances are still in play, but rates already dipped yesterday and then leveled out back to what they have been the past week. 7-year arms are pricing aggressive if your open to it,
Ducks4brkfast
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Where are the 7 year ARMS at?
SteveBott
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I'm pretty confused with this endeavor.

First remember the TACO trade. I'm very doubtful it actually happens. This could eventually be "infrastructure week".

As said it is not a huge shift since so far, it's a one and done.

And Fannie/Freddie will be implementing this. But buying mortgages is all they do. It's their mission. They already buy any eligible loan. So are they going to lower their credit standards? Buy loans they currently do not buy now? What mortgage market will this target?

Right now I thinks it's another gaslighting from this administration.
dwood21
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5.5 paying 1 point currently
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