Announcement

Collapse
No announcement yet.

how long will the fed stay out of the mbs market?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • how long will the fed stay out of the mbs market?

    the fed is supposed to end qe in march, and has said specifically that it will stop buying mbs. this should raise mortgage rates. simultaneously, this spring will see a sharp rise in mortgage resets for alt-a and specifically option-pay mortgages, many of which are likely underwater. how long will the fed stay out of the mbs market?

    1. it won't actually stop at all.
    2. 1 month
    3. 3 months
    4. 6 months
    5 a year or longer
    24
    It won't get out in the first place
    54.17%
    13
    1 month
    8.33%
    2
    3 months
    12.50%
    3
    6 months
    8.33%
    2
    a year or longer
    16.67%
    4
    Last edited by BDAdmin; 01-24-10, 05:12 PM.

  • #2
    Re: how long will the fed stay out of the mbs market?

    With the government owning Fannie and Freddie, I'm wondering if there might not be ways around having to buy MBS' directly. The Fed knows about the implications of not buying MBS'. I think they've got something else up their sleeves.
    Last edited by BDAdmin; 01-24-10, 05:13 PM.

    Comment


    • #3
      Re: how long wiii the fed stay out of the mbs market?

      Originally posted by we_are_toast View Post
      With the government owning Fannie and Freddie, I'm wondering if there might not be ways around having to buy MBS' directly. The Fed knows about the implications of not buying MBS'. I think they've got something else up their sleeves.
      ok, fannie and freddie will buy mortgages. they will get their money from the treasury. the treasury will get its money by selling tbonds.... to the fed.
      Last edited by BDAdmin; 01-24-10, 05:13 PM.

      Comment


      • #4
        Re: how long wiii the fed stay out of the mbs market?

        Originally posted by jk View Post
        ok, fannie and freddie will buy mortgages. they will get their money from the treasury. the treasury will get its money by selling tbonds.... to the fed.
        I agree with jk, but I can't figure out how to map that to this survey. Does indirect Fed involvement in MBS count as involvement?
        Most folks are good; a few aren't.

        Comment


        • #5
          Re: how long wiii the fed stay out of the mbs market?

          Originally posted by ThePythonicCow View Post
          I agree with jk, but I can't figure out how to map that to this survey. Does indirect Fed involvement in MBS count as involvement?
          beats me, pc. i made up the survey before i realized that they would use fannie and freddie as ventriloquist's dummies. i originally voted 3 months, but now i think the answer is they'll never stop, but the gse's will be intermediaries. and of course the fact that the fed is no longer buying mbs will be touted as a great success in stepping back from q.e.:rolleyes:

          Comment

          Working...
          X