General World News

Agency MBS market is facing a supply-side threat

Issuance of agency mortgage-backed securities (MBS) is projected to contract significantly over the next two years in the face of a housing-market contraction, but the actual supply of MBS available for purchase in the private market is expected to swell to record levels over that period.

That’s the takeaway from a recent market report by the Amherst Group, a real estate investment firm based in Austin, Texas. The major contributor to the projected elevated MBS supply, according to the report, is the Federal Reserve and its monetary-tightening policy. 

Part of the Fed’s strategy to beat back inflation includes details ⇒

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