Powell’s ‘Continuity’ Promise Foretells Still Slower Mortgage-Backed Securities Speeds
- Slower prepays may pressure call protection spec pool prices
- Fed Chair said market ‘should expect substantial MBS rolloff’
Jerome Powell's House Testimony in Two Minutes
This article is for subscribers only.
New Fed Chairman Jerome Powell’s pledge to "provide for continuity in monetary policy" points to higher rates through year-end and continued muted prepayment speeds for mortgage-backed securities.
With the 30-year mortgage rate sporting a with the 10-year U.S. Treasury yield, according to data compiled by Bloomberg, another three or four Fed rate hikes this year may see the 30-year mortgage move higher from its current 4.64 percent.