Question
Article: How the Feds Policy Shift Is Rippling Through the Housing Market The central bank had been the biggest buyer of mortgage bonds, but now
Article: How the Feds Policy Shift Is Rippling Through the Housing Market The central bank had been the biggest buyer of mortgage bonds, but now it is stepping back, and borrowing costs are rising. Mortgage lenders adjusted their rates rapidly after the central bank laid out its plans. The Federal Reserves decision to end its era of easy money is rippling through the mortgage market, driving up the cost of buying a home. A) Question 1: Since the pandemic, who has been the biggest buyer of mortgage-backed securities? According to the article, how much of the MBSs have the fed stockpiled? Question 2: Current Economic and market risks have hammered securities of all types. What are some of the asset classes that have been affected, how have they been affected, and why? Question 3: According to the article, how are the recent market moves a mirror image of what happened in the spring of 2020?
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