Title of article :
Did theFederalReserve’sMBSpurchaseprogramlower
mortgagerates
Author/Authors :
Diana Hancock، نويسنده , , WaynePassmore، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2011
Abstract :
On November25,2008,theFederalReserveannounceditwouldpurchasemortgage-
backedsecurities(MBS).Thisprogramaffectedmortgageratesthroughthreechannels:
(1) improvedmarketfunctioninginbothprimaryandsecondarymortgagemarkets,(2)
clearergovernmentbackingforFannieMaeandFreddieMac,and(3)anticipationof
portfoliorebalancingeffects.WeuseempiricalpricingmodelsforMBSyieldsandfor
mortgageratestomeasurerelativeimportanceofchannels:Thefirsttwowere
importantduringtheheightofthefinancialcrisis,buttheeffectsofthethirddepended
on marketconditions.Overall,theprogramputsignificantdownwardpressureon
mortgagerates.
Keywords :
MBSFederal ReserveGSEsMortgage
Journal title :
Journal of Monetary Economics
Journal title :
Journal of Monetary Economics
