3 ms·

Wasn't the FED buying all the 2.5% mortgages?

• metaphor 4y ago
  Interested to learn the source of where you got this 2.5% figure from. That QE activity peaked circa Apr 2022[1]. The Fed subsequently announced monetary policy circa May 2022[2] to reduce the size of their balance sheet; with respect to agency mortgage-backed securities, that means predictably liquidating assets in the open market at a rate cap of $35 billion per month. The Fed's weekly H.4.1[3] § 3 reports agency MBS assets are overwhelmingly residential. They were slowly ratcheting down commitments to buy MBS, and effectively reached 0 circa end of Oct 2022. [1] https://fred.stlouisfed.org/graph/?g=ZcQw https://fred.stlouisfed.org/graph/?g=ZcQw [2] https://www.federalreserve.gov/newsevents/pressreleases/monetary20220504b.htm https://www.federalreserve.gov/newsevents/pressreleases/mone... [3] https://www.federalreserve.gov/releases/h41/20230119/ https://www.federalreserve.gov/releases/h41/20230119/