As Freddie Mac Posts A Second Consecutive Uptick In Mortgage Rates, Are MBS Next On The Monetization Menu?
Freddie Mac updated its weekly mortgage survey and notes that for the week just ended, the 30 Year FRM has risen for the second week in a row from an all time low of 4.19%, now at 4.23%. This is a direct impact of the recent rise in yields in the 10 year UST. And since the White House's primary goal through the end of its administration is to get mortgage rates to unsustainably low rates, it is now obvious why Bill Gross is bypassing the purchase of Treasuries and going straight into MBS. Will the Fed surprise by buying not just Treasurys but mortgage backed securities yet again, to get the best bang for the mortgage rate buck?