Fed’s Retreat From Mortgages Approaching Tipping Point
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The Federal Reserve is about to find out how well the mortgage-bond market can stand on its own.
Fed buying of the securities that helped spur a housing recovery is poised to fall below growth in the $5.5 trillion government-backed market as soon as May, Nomura Holdings Inc. said. Last year, the Fed added twice as much of the debt as was created, suppressing yields that guide mortgage interest rates.