the same is true for government policies or programs - those are also likely to push mortgage rates lower short-term at the very least, extended government guarantees synthetically reduce the risk - the US government is a more trusted backer than the issuer of the MBS

Illya Gerasymchuk 2025-09-19 22:08

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