Thanks to low mortgage rates and a sharp increase in the refinancing of housing loans, the number of mortgage-backed securities has skyrocketed.
The value of single-family mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac was nearly $ 322 billion in August, a new monthly record, according to an analysis by industry research firm Inside Mortgage Finance quoted by the Wall Street Journal.
However, securities yields have been relatively stable in recent months and have even declined slightly. Partly because the Federal Reserve said in March that in an effort to stop credit markets they would buy a virtually unlimited number of mortgage bonds.
Banks also increased their holdings of mortgage bonds as deposits were flooded.
Applications for new housing loans and refinancing have Ascended in recent months, when pandemic shutdowns have ended and interest rates have fallen.
[WSJ] – Sasha Jones