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Bank of America Corp. gobbled up hundreds of billions of dollars of mortgage bonds during the height of the pandemic. But with rates rising, its buying spree has ended. Banks have stepped back from buying mortgage bonds. So has the Federal Reserve, the largest investor in that market. Foreign buyers and money managers are curtailing purchases too, analysts say.

Questions:

• Why are mortgage rates increasing?
• Describe how a mortgage on a home becomes part of a mortgage-backed security.
• What impact have the Fed's actions had on the market for mortgage-backed securities?