After an initial wobble, the mortgage-bond market found its footing in the first full week of trade following the Federal Reserve’s exit. Trading volumes have risen sharply, buyers have returned and risk premiums have tightened on these bonds that are guaranteed by government-backed housing giants Fannie Mae, Freddie Mac and Ginnie Mae. “Agency mortgages have adjusted to the Fed’s absence now,” said Walt Schmidt, mortgage strategist at FTN Financial. Risk premiums on mortgage bonds widened 0.13 percentage point in the first two sessions after the March 31 end to the Fed’s $1.25trn purchase program.
Mortgage-bond market adjusts to end of Fed program
Most Popular Articles
Latest Articles
DOJ charges one of America’s top LOs in alleged mortgage fraud scheme
Christopher Gallo was charged with one count of conspiracy to commit bank fraud.
-
Top Producer Review: Features, pricing & alternatives
-
A&D Mortgage names new servicing manager
-
HUD aims to help protect communities from extreme heat
-
Freedom Mortgage founder addresses ’extraordinary’ credit profiles, profitability and products
-
Realty One Group joins growing list of firms to settle commission lawsuits