MBS market dried up last week

Most of loan originators don't hold the loan on their balance sheet. They just package your loans and sell them to investors on mortgage back srcurity (MBS) market. Last week, investors are so scared and stop buying MBS and cause the rate shoot up even when treasury rate dropped a lot.

This is similar to money market seize up during 2008/9 crisis. Fed is worried so much that they felt they have to intervene to avoid the collapse of housing market.

所有跟帖： 

• If no one wants to extend loans,where do you think housing marke -不惑2020- ♂ (0 bytes) () 03/15/2020 postreply 19:10:36

• 看来还是降低杠杆，现金为王。 -mobius- ♂ (0 bytes) () 03/15/2020 postreply 19:21:48