Industry Update: the Future of eClosing and RON

Join industry experts for an in-depth discussion on the future of eClosing and how hybrid and RON closings benefit lenders and borrowers.

DOJ v. NAR and the ethics of real estate commissions

Today’s HousingWire Daily features the first-ever episode of Houses in Motion. We discuss the Department of Justice’s recent move to withdraw from a settlement agreement with the NAR.

Hopes for generational investment in housing fade in DC

Despite a Democratic majority, the likelihood of a massive investment in housing via a $3.5 trillion social infrastructure package appears slim these days. HW+ Premium Content

How Biden’s Neighborhood Homes proposal impacts real estate investors

Dubbed the Neighborhood Homes Tax Credit, the proposal is part of the larger American Jobs Plan legislation — also known as Biden’s infrastructure plan. Here's a look into how it impacts real estate investors.

Politics & Money

For the housing market, look at bonds over MBS

Long term downtrend in bond yields is the real story


This is the first time I am writing about mortgage backed securities (MBS) because I hardly ever consider this aspect of the housing market in my work. But since now even Federal Reserve members are discussing the pros and cons of MBS, this is a good time to give you my take.

The 10-year yield has been in a downtrend since 1981, and so have mortgage rates, so the MBS market hasn’t ever been a focus of mine. Recently though, I have been reading a lot of speculation that when quantitative easing ends, the U.S. housing market will be in trouble because mortgage rates will skyrocket and cause a crash in sales and prices that would amount to the second coming of the housing bubble. 

It is an easy argument to make that during the pandemic, the purchase of MBS by the Federal Reserve was needed to bolster the economy. Today, however, when inflation seems a larger negative talking point than economic sluggishness, it makes less sense that the Federal Reserve is still buying MBS.

However, why hasn’t the bond market blown up higher with solid economic growth, a whisper of when tapering will happen, and hotter than normal trend inflation. 

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