Illya Gerasymchuk
Entrepreneur / Engineer
mortgage-rates targeted QE, such as the mass purchase of mortgage backed securities (MBS) by the Fed will drive the mortgage yields down short-term, but also further leverage that market sector in the process
so expect a 2008 QE-1 style balance sheet expansion by the Fed targeting mortgage securities via OMO there will also likely be additional government policies and programs, such as increasing the scope and volume of explicit government guarantees on mortgage securities