By Bonnie Sinnock
Additional mortgage-backed securities purchases by the Federal Reserve Bank of New York will address private investor skittishness about the asset class, but it will not necessarily lower rates.
“Right now the only meaningful end buyer is the Fed and while they’ve been in the market every day this week, it’s not been near enough,” Chris Bennett, principal at Vice Capital Markets, said in an email Thursday.
This article originally appeared in National Mortgage News [subscription required].
