2011 was just after the GFC where MBS caused a global financial meltdown. It's unsurprising that non-government MBS were having a hard time finding a market. An

2011 was just after the GFC where MBS caused a global financial meltdown. It's unsurprising that non-government MBS were having a hard time finding a market. And ultimately, government guarantees for MBS is just a symptom of a larger problem. Government support, both in Fed market operations and policies like guaranteeing MBS, artificially lowers the cost of capital for home buyers, which drives up prices.