MBS CLOSE: Fed May Re-Enter MBS Market By Year End
ByPosted To: MBS Commentary
Wait a minute… I didn't know the Fed was even OUT of the MBS market yet! Isn't that supposed to happen at the end of the first quarter of 2010? Yes… And hasn't the fed already said that they will "act as necessary" blah blah blah blah blah? Yes… So why is there news today about what is ostensibly more of the same "there if you need us" talk from the Fed? More than anything, this is reiteration and/or confirmation of that which has already been made clear: to whatever extent the perception remains that housing and the mortgage market are integral to economic recovery, the Fed will (here comes the cliche) "ACT AS NECESSARY." In other words, you don't get to know at what point rate sheets will be bad enough to force the Fed's hand here, but…(read more)