Federal Reserve’s Bizarre Mortgage-backed Securities (MBS) Purchase Strategy With Ultra-low Available Housing Inventory (Housing Bubble Preservation?)

Sharing is Caring!

by confoundedinterest17

Chairman Powell, tell me why The Federal Reserve is buying so much agency mortgage-backed securities (MBS) while there is a dearth of available housing inventory? Especially when home prices are growing at 12.2% year-over-year?

READ  This financially engineered market is brought to you by Federal Reserve - helping the rich and elites put serfs out of homes since 1913.

Mortgage rates were already falling starting in December 2018, but started rising again in 2021 …until March when they began falling again.

READ  Mortgage Purchase Apps Plunge Despite Homebuilder Euphoria (House Price-To-Rent Ratio Higher Today Than The Iceberg-like Housing Bubble of 2005/2007)

Is this a bubble-preservation strategy? Or just ..?

The Fed’s MBS-buying strategy reminds me of Tompall Glaser’s song “Put Another Log on the Fire.”

585 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.