Mortgage-Backed Securities

In the past, government interventions, such as the Federal Reserve's purchase of mortgage-backed securities, artificially boosted housing demand by lowering interest rates and making financing more accessible. This led to increased home purchases and rising prices. 

Today, while demand for housing remains, affordability challenges are causing many buyers to hesitate. Elevated mortgage rates above 6% are likely to maintain affordability challenges and the lock-in effect, limiting sales recovery.