Bonds
US Mortgage-Bond Trading Plunges as Higher Rates Cut Into Sales
- Overall volume fell about 14%, with all major types declining
- Banks are buying fewer securities as production falls
Homes in a subdivision in McDonough, Georgia.
Photographer: Elijah Nouvelage/BloombergThis article is for subscribers only.
US mortgage bond trading activity plunged in 2022 as new mortgage lending volume dropped and banks cut back on buying, a trend that’s likely to continue this year if mortgage rates stay relatively high.
Overall agency mortgage backed security average daily trading volume fell about 14%, according to Finra Trace data compiled by the Securities Industry and Financial Markets Association. It was the second straight year of declines.