The Fed Now Owns 30% of All U.S. Mortgages

One result of the Federal Reserve using quantitative easing to bail out the bankrupt financial system, is that the Fed now owns over 30% of all U.S. mortgages, according to a report in The Street. The total balance sheet is nearly $7 trillion in securities and another $2 trillion in mortgages. “The Fed has snapped up $1 trillion of mortgage bonds since March. It bought around $300 billion of the bonds in each of March and April, and since then has been buying about $100 billion a month. The Fed now owns almost a third of bonds backed by home loans in the U.S. If the Fed maintains its current buying pace, it will again own 34% of the mortgage universe by year’s end.”