Is The Fed To Blame For High House Prices? 4
Clearly US banks have not been very keen to hold on to the mortgages that they have created, instead offloading them to the GSEs.
While this isn’t surprising per se, since the Fed is still quite aggressively purchasing Agency MBS, what is noteworthy is how much the pace of this offloading has accelerated over the last 6 months.
What could this mean?