Government-backed U.S. mortgage bonds underperformed Treasuries in August by the most since November 2008 amid concern federal intervention will spark a refinancing wave that reduces the value of the securities. Fannie Mae, Freddie Mac and Ginnie Mae bonds tied to home loans returned 34 basis points, or 0.34 percentage point, less than U.S. debt last month, Barclays Capital indexes show. Fannie Mae’s 6.5 percent bonds maturing in about 24 years fell 0.75 cent last month to 108.9 cents on the dollar as 4.5 percent Treasury bonds maturing in 2036 gained 8.9 cents to 118.34 cents, according to data compiled by Bloomberg. President Barack Obama’s administration responded to July’s record decline in U.S. home sales by highlighting the Federal Housing Administration’s refinancing program. Homeowners swapping into new loans, with the lowest mortgage rates in 39 years, would punish bond investors who bought securities pegged to loans with higher interest rates.
Mortgage bonds lose ground with home refi boom: credit markets
September 2, 2010, 1:03pm
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
Most Popular Articles
Better Mortgage settles underwriter overtime lawsuit for $7.185M
Court filings show Better Mortgage agreed to a $7.185M settlement over underwriter overtime, including $357,750 for PAGA claims.
Jul 07, 2026
-
RealTrends Verified City Rankings reveal where top agents and teams are building scale
Jul 10, 2026 -
Iran conflict lifts mortgage rates, but housing demand stays positive
Jul 11, 2026 -
Trump didn’t sign it, but the 21st Century ROAD to Housing Act is now law
Jul 11, 2026 -
New policy impact may ignite a manufactured housing blue-sky era
Jul 10, 2026 -
What the ROAD to Housing Act means for agents, homebuyers
Jul 13, 2026
Latest Articles
Compass files ethics complaints against Zillow in 26 states
Compass filed ethics complaints alleging Zillow false advertising across 26 states, 55 MLSs and 30 Realtor associations.
-
NTREIS names Joey Bandemer VP of data governance
-
UWM broker ultimatum tied to 5 bps price drop at rivals
-
Zillow says conspiracy, MRED and Compass say Zillow did this to itself
-
Christy Soukhamneut on joining Stockton Mortgage as chief strategy and innovation officer
-
Bank regulators issue guidance on credit risk for unauthorized workers
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio