Fed Fears Hit Mortgage Bonds

Fed has started raising interest rates, which hits the value of all existing fixed-rate bonds, but also because it might start selling some of its $2.7 trillion holdings of the bonds, potentially further diminishing their value. 

The housing market, which after two years of surging prices has widely been described as overheated.

With the average 30-year mortgage rate rising to 5%, homeownership might now be out of reach for millions more Americans.

WSJ 31 May 2022

https://www.wsj.com/articles/fed-fears-hit-mortgage-bonds-attracting-investors-11653850219