Freddie’s 30Y Mortgage Rate Drops To 2.90% (Pre-Covid February Level) As Fed Keeps Purchasing Agency MBS Amid Vanishing Low-end Housing

Freddie Mac’s 30-year mortgage rate index fell to 2.90% as The Fed keeps buying agency mortgage-backed securities.

As The Fed helps to lower mortgage rates, the supply of low-end housing keeps vanishing. Particularly out west for houses less than $250,000.

Throwing gas on a housing fire isn’t a great idea with limited inventory of houses, particularly for starter homes. The Fed is not operating for the benefit of lower-income home buyers.

The Fed isn’t fixing a hole, its creating a bigger hole in home affordability.

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