Mortgage Rates About to JUMP as Banks Begin LIQUIDATING Mortgage Backed Securities
With the recent banking stress and bank failures, more and more banks are being forced to re-assess their duration exposure risk. Forcing many mid sized and small banks to begin selling their mortgage backed securities and change what they are investing in going forward. This is causing massive stress in the MBS market, and leading to higher mortgage rates down the road. The federal reserve and Jerome Powell addressed this in part in their most recent FOMC meeting, as well as how the most important data to watch going forward will be how much banks and lenders tighten lending standards. If you are in the market to buy your next house this video is a must watch to know the direction of the US economy and the US housing market.
