Title of article
Did theFederalReserve’sMBSpurchaseprogramlower mortgagerates
Author/Authors
Diana Hancock، نويسنده , , WaynePassmore، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2011
Pages
17
From page
498
To page
514
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
Serial Year
2011
Journal title
Journal of Monetary Economics
Record number
846488
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