Since the Fed's peak (so far) holdings of MBS hit $2.74T in April 2022, they've "run off" $242B, about 8%, over 16 months.
In just TWO months in 2020 they monetized $500B. At that time, Case-Shiller home prices were up near 5% YOY, on their way to 22%.
They owned $0 MBS in 2008 pic.twitter.com/vm3uyuDcq3
— Rudy Havenstein, Senior Markets Commentator. (@RudyHavenstein) September 1, 2023
This seems to be their mandate pic.twitter.com/V3Y7wSGovx
— Rudy Havenstein, Senior Markets Commentator. (@RudyHavenstein) September 1, 2023
Home price to median income ratio is at levels higher than even the 2008 housing bubble. Let that sink in. pic.twitter.com/XFRKeWbBQv
— Bravos Research (@bravosresearch) September 4, 2023
According to Redfin, homebuyer housing payments just hit another record high of $2,649/month.
Since last year, homebuyer housing payments are up an alarming 17.8%.
Since 2020, new homebuyer housing payments are up as massive 79.5%.
As rates continue to rise and supply falls,… pic.twitter.com/CQNRFqY6Il
— The Kobeissi Letter (@KobeissiLetter) September 4, 2023
This is the Fed’s idea of “tightening”
I must've heard three or four times this week, from people who should know better, that "the Fed has been doing $95 billion a month of QT."
No. They've averaged just over $50 billion a month since their fun coupons peaked 16 months ago in April 2022.https://t.co/2qvJ9bHRWf
— Rudy Havenstein, Senior Markets Commentator. (@RudyHavenstein) September 3, 2023