The Federal Reserve and housing long term

So the Federal reserve owns 2.726 Trillion worth of MBS (mortgage backed securities).

Now to me that’s kinda a lot of housing. So let’s just see how much that really is.

Last year according to statista approximately 5.95 million homes were sold in the U.S last year.

Last quarter the median home sold at $428,700 according to the Federal Reserve.

So math time. 5,950,000 x 428,700 = 2.55 Trillion. So the Federal Reserve currently owns more mortgage securities then were sold in entirety of last year.

I’m surprised there aren’t any articles on this. I think the Fed is greatly affecting the market and should not own a whole years worth of mortgages. It is greatly propping up housing.

Anyway, what do you folks think? Are there any articles or good discussions elsewhere about this?

https://fred.stlouisfed.org/series/WSHOMCB https://www.statista.com/statistics/226144/us-existing-home-sales/

https://fred.stlouisfed.org/series/MSPUS

submitted by /u/BubblyJoe
[link] [comments]

So the Federal reserve owns 2.726 Trillion worth of MBS (mortgage backed securities). Now to me that’s kinda a lot of housing. So let’s just see how much that really is. Last year according to statista approximately 5.95 million homes were sold in the U.S last year. Last quarter the median home sold at $428,700 according to the Federal Reserve. So math time. 5,950,000 x 428,700 = 2.55 Trillion. So the Federal Reserve currently owns more mortgage securities then were sold in entirety of last year. I’m surprised there aren’t any articles on this. I think the Fed is greatly affecting the market and should not own a whole years worth of mortgages. It is greatly propping up housing. Anyway, what do you folks think? Are there any articles or good discussions elsewhere about this? https://fred.stlouisfed.org/series/WSHOMCB https://www.statista.com/statistics/226144/us-existing-home-sales/ https://fred.stlouisfed.org/series/MSPUS submitted by /u/BubblyJoe [link] [comments]

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