All Quiet on the Mortgage Front

Michael Dunton at Mt. McKinley Bank emails:

It’s amazing how quiet the mortgage area is this summer—these sub-5% rates have played out, as your recent stats suggest. The Fed seems to be increasing its MBS holdings—they are going up, not down (see the pdf of the H.4.1. from the Fed). It’s clear to me that interventionism has been, so far, an expensive failure. The liquidation genie will still make an appearance. Next shoe to drop on the double-dip recession forecast?