How does the movement of the market of Mortgage Backed Securities affect home prices?

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How does the movement of the market of Mortgage Backed Securities affect home prices?

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Anonymous 0 Comments

They don’t. There are economic fundamentals like inflation, prime interest rate, and unemployment that influence both MBS and home pricing, but MBS pricing doesn’t change home pricing.

MBS pricing generally reflects the loan repayment risk of past home purchases. Home prices are driven largely by localized supply and demand.

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