The housing and mortgage markets are struggling with impending recession and Fed financial tightening.
MBS returns prolonged their damaging run throughout their worst yr on file as 10-year Treasury yields topped 4% and the pattern in MBS spreads widened.
The MBS sector has had solely two constructive months in each complete and extra returns this yr — Might and July.
Check out the 4.5% coupon company MBS worth and danger (period) with Fed tightening (orange line) and crashing M2 Cash development (inexperienced line).
Time for one thing new within the MBS market?