> The market forces pushing housing prices stratospheric in California are largely about the state’s severe housing shortage.
I wonder where does QE lay on the list.
I wonder where does QE lay on the list.
And most of those folks had paid off their mortgage or had it close to paid off, and have experienced so much appreciation that their purchase price is less than a current down payment.
That QE activity peaked circa Apr 2022[1].
The Fed subsequently announced monetary policy circa May 2022[2] to reduce the size of their balance sheet; with respect to agency mortgage-backed securities, that means predictably liquidating assets in the open market at a rate cap of $35 billion per month.
The Fed's weekly H.4.1[3] § 3 reports agency MBS assets are overwhelmingly residential. They were slowly ratcheting down commitments to buy MBS, and effectively reached 0 circa end of Oct 2022.
[1] https://fred.stlouisfed.org/graph/?g=ZcQw
[2] https://www.federalreserve.gov/newsevents/pressreleases/mone...