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Fed’s Mortgage-Backed Securities Purchases Sought Calm, Accommodation During Pandemic
We explore the Federal Reserve’s purchases of agency MBS—mortgage bonds guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac—and related market dynamics during the pandemic, including why mortgage rates fell to historic lows.
Real-Time Market Monitoring Finds Signs of Brewing U.S. Housing Bubble
There is growing cause for concern that U.S. house prices are again becoming unhinged from fundamentals.
Large, Dominant Firms Depress Local Wages; Housing Costs Help Offset Lower Pay
Concern has increased about the ability of very large firms to exert market power and hold down wages in localities where they dominate.
The Long Road to Housing Finance Reform: 'Are We There Yet?'
Over the past decade, broad-based legislative reforms for housing finance have proven elusive. However, reflecting lessons from the financial crisis, a political consensus has emerged on how Fannie Mae and Freddie Mac should operate.
Surging House Prices Expected to Propel Rent Increases, Push Up Inflation
The inflation rates of rent and owners’ equivalent rent (OER)—the amount of rent equivalent to the cost of ownership—have declined sharply since the COVID-19 pandemic began in February 2020. However, we expect rent inflation and OER inflation to accelerate in the years to come.
Journal Article
Banking Trends: The Growing Role of CRE Lending
Commercial real estate has grown dramatically as a share of U.S. economic activity and is banks? largest lending category, particularly for small and midsize banks. It is also the riskiest part of bank portfolios. James DiSalvo and Ryan Johnston provide a primer. First in a series.
After the Bust, the Long Road to Housing Finance Reform
The Treasury recently released a plan proposing several administrative and legislative changes aimed at returning Fannie Mae and Freddie Mac to the private sector after more than a decade of federal control.
Federal Reserve Banks of Atlanta and Dallas Conference Explored Housing, Urban Economics
Residential real estate prices rose sharply throughout the United States following the onset of COVID-19 in early 2020. While property owners received a capital gains windfall, first-time buyers and renters have struggled with reduced affordability.
Private Subprime Mortgages Challenged FHA During 2000s Housing Boom
Considerable research has been devoted to better understanding the meteoric rise of the PLS subprime mortgage market in the early-to-mid 2000s. But an important aspect has been largely ignored: The simultaneous decline in mortgage originations with Federal Housing Administration (FHA) insurance.
Inflation in Services Likely to Rise Further Despite Slowing Goods Prices
Given rising demand for in-person services, the slow pass-through of surging house prices to rent and owners’ equivalent rent (OER), and higher health care worker wages, services inflation is likely to increase further.