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