Fed mortgage program expensive

The Federal Reserve’s purchase of securities and Treasury bonds in an effort to keep mortgage rates down has been expensive and has not had much of an impact, according to an analysis by JPMorgan Chase & Co. The Federal Reserve has purchased more than $480 billion in mortgage-backed securities and more than $130 billion in Treasury bonds. But the Federal Reserve is underwater on its portfolio and would lose about $5 billion if it revalued its portfolio to match the market, according to the analysis. The Fed’s purchases amount to about $2,500 per borrower, which is more than it costs most mortgage borrowers to refinance their debt.

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