I've been researching the Fed's Central Bank's dealings in the mortgage based securities (MBS). Some articles discuss the increase purchases of MBS by the feds to prevent "massive" job losses in the real estate business (builders / developers included). Now the Feds are discussing selling MBS to others to reorient its balance sheet around treasuries.
Not to be a gloom and doomer, but, if there's another pandemic shut down, or the economy stutters deep enough and long enough, then there will be a lot of missed mortgage payments, if not loan defaults. Especially considering that some people really extended themselves to buy during this high market, who's gonna get stuck holding the bag if the MBS's tank like the 2008 subprime disaster?
Not to be a gloom and doomer, but, if there's another pandemic shut down, or the economy stutters deep enough and long enough, then there will be a lot of missed mortgage payments, if not loan defaults. Especially considering that some people really extended themselves to buy during this high market, who's gonna get stuck holding the bag if the MBS's tank like the 2008 subprime disaster?