Mortgage-backed securities boom breaks monthly record

New high in single-family home category

National /
Sep.September 16, 2020 10:30 AM
The value of single-family mortgage-backed securities hit a new monthly record, and demand is still strong. (iStock)

The value of single-family mortgage-backed securities hit a new monthly record, and demand is still strong. (iStock)

Thanks to low mortgage rates and a surge in home-loan refinancing, the number of mortgage-backed securities has skyrocketed.

The value of single-family mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac was almost $322 billion in August, a new monthly record, according to an analysis by industry-research firm Inside Mortgage Finance cited by the Wall Street Journal.

However, yields for the securities have been relatively steady in recent months and even declined slightly. That’s partly because the Federal Reserve said in March it would purchase an essentially unlimited amount of mortgage bonds in an attempt to backstop the credit markets.

Banks have also increased their mortgage bond holdings as they have been flooded with deposits.

Applications for new home loans and refinancing have soared in recent months as pandemic shutdowns ended and interest rates fell.

[WSJ] — Sasha Jones


Related Articles

arrow_forward_ios
(Photo illustration by The Real Deal with Getty)
Mortgage applications decline even as rates fall again
Mortgage applications decline even as rates fall again
Kent Companies' Bill Kent and the late T. Boone Pickens with Mesa Vista Ranch at 2050 Reynolds Ranch Road (Kent Companies, Getty, Hall and Hall)
T. Boone Pickens’ panhandle ranch has sold for $170M
T. Boone Pickens’ panhandle ranch has sold for $170M
(Getty)
Fifth straight monthly decline in pending home sales
Fifth straight monthly decline in pending home sales
(Getty)
Mortgage applications to buy homes rise as rates drop below 6.5%
Mortgage applications to buy homes rise as rates drop below 6.5%
(Getty/Illustration by The Real Deal)
TRD Pro: 7% mortgage rates are not so bad
TRD Pro: 7% mortgage rates are not so bad
(Getty; Illustration by The Real Deal)
Agents: Life is good under 7%
Agents: Life is good under 7%
(Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Borrowers are back: Mortgage applications rise
Borrowers are back: Mortgage applications rise
(Getty)
Buyers look to combat high rates with creative workarounds
Buyers look to combat high rates with creative workarounds
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...