The Latest Agency Mbs Industry Statistics Explained
Non-agency MBS issuance totaled $1.4 trillion in the fourth quarter of 2020, up from just $239 billion in the same quarter in 2019.
The statistic indicating that non-agency mortgage-backed securities (MBS) issuance reached $1.4 trillion in the fourth quarter of 2020, compared to $239 billion in the same quarter in 2019, suggests a significant increase in the volume of non-agency MBS issued over the year. This surge in issuance could be attributed to various factors such as increased investor demand for MBS assets, favorable market conditions, and lower interest rates. The substantial growth in non-agency MBS issuance indicates a higher level of activity in the mortgage market and potentially signals increased confidence and liquidity within the sector.
In 2019, agency MBS composed 61% of all mortgage-related securities.
In 2019, agency mortgage-backed securities (MBS) accounted for 61% of all mortgage-related securities, indicating their significant presence within the mortgage market during that year. Agency MBS are securities backed by mortgages that are guaranteed or issued by government-sponsored enterprises like Fannie Mae, Freddie Mac, or Ginnie Mae. The high percentage of agency MBS in the mortgage-related securities market suggests that these government-backed securities were a dominant and preferred type of investment within the mortgage industry in 2019. This statistic underscores the importance and influence of agency MBS in providing liquidity and stability to the mortgage market during that period.
As of Q3 2020, total Net MBS issuance was around $422 billion.
The statistic “As of Q3 2020, total Net MBS issuance was around $422 billion” refers to the amount of Mortgage-Backed Securities (MBS) issued in the third quarter of 2020, after accounting for repayments and redemptions. MBS are financial instruments that represent an ownership interest in a pool of mortgage loans, and their issuance plays a critical role in the functioning of the mortgage market. The $422 billion figure indicates the total value of new MBS securities issued during that quarter, which helps to provide liquidity to lenders and investors in the housing market. This statistic is significant as it provides insight into the level of activity in the mortgage industry and can impact interest rates and overall economic conditions.
U.S. agency MBS purchases by the Federal Reserve reached $178 billion in March 2020.
The statistic ‘U.S. agency MBS purchases by the Federal Reserve reached $178 billion in March 2020’ indicates the notable amount of Mortgage-Backed Securities (MBS) that the Federal Reserve purchased from U.S. agencies during that specific month. This large purchase of MBS by the Federal Reserve suggests a significant intervention in the market, likely aimed at injecting liquidity and stimulating the economy during the Covid-19 pandemic, which heavily impacted financial markets and the overall economy in March 2020. The purchase of MBS is a common tool used by central banks, such as the Federal Reserve, to influence interest rates, support the housing market, and encourage lending by financial institutions. The substantial size of the purchase highlights the Federal Reserve’s active role in implementing monetary policy measures to stabilize the economy during this turbulent period.
As of Q3 2020, Agency-only MBS volume was about $6.1 trillion.
The statistic “As of Q3 2020, Agency-only MBS volume was about $6.1 trillion” indicates the total market size or volume of Agency-only mortgage-backed securities (MBS) as of the third quarter of 2020. This $6.1 trillion figure represents the total value of outstanding Agency-only MBS in the market, which are mortgage-backed securities issued or guaranteed by government-sponsored enterprises like Fannie Mae, Freddie Mac, or Ginnie Mae. Agency-only MBS are considered lower risk due to the implicit or explicit backing of the U.S. government, making them a popular investment option for many investors seeking income with relatively low credit risk. The size of the Agency-only MBS market at $6.1 trillion signifies the significant scale and importance of this sector within the overall fixed income market landscape.
As of the end of 2020, foreign holdings of agency MBS stood at $1,052 billion.
The statistic states that by the end of 2020, the total value of agency mortgage-backed securities (MBS) held by foreign investors was $1,052 billion. Agency MBS are securities backed by a pool of mortgages that are guaranteed or issued by government-sponsored enterprises such as Fannie Mae, Freddie Mac, or Ginnie Mae. Foreign holdings of agency MBS represent investments made by overseas entities in the U.S. housing market, providing additional capital for mortgage lending and supporting liquidity in the broader financial system. Monitoring foreign investment in agency MBS is important for assessing the level of international participation in the U.S. housing market and understanding the potential impacts on mortgage rates and overall market dynamics.
In January 2021, the total outstanding amount of agency MBS was $7.84 trillion.
The statistic ‘In January 2021, the total outstanding amount of agency MBS was $7.84 trillion’ refers to the aggregate value of agency mortgage-backed securities (MBS) held by investors at that particular point in time. Agency MBS are securities that are backed by mortgage loans issued by government-sponsored enterprises like Fannie Mae and Freddie Mac, which help facilitate the flow of funds into the housing market by providing liquidity for mortgage lenders. The $7.84 trillion outstanding amount indicates the total market value of these securities that were issued and remain in circulation as investments. This figure provides insight into the scale of the agency MBS market and reflects the amount of capital that is tied up in these securities as part of the broader financial system.
In 2020, Ginnie Mae MBS issuance reached an all-time annual record of $748 billion.
The statistic indicates that in 2020, the Government National Mortgage Association, commonly known as Ginnie Mae, issued Mortgage-Backed Securities (MBS) with a total value of $748 billion, which was the highest annual amount in the organization’s history. Ginnie Mae MBS are backed by the U.S. government and are typically composed of pools of mortgages guaranteed by various government agencies, primarily the Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA). The record issuance in 2020 could be reflective of various factors influencing the housing market and interest rates during that period, such as the economic impacts of the COVID-19 pandemic leading to increased housing activity and mortgage refinancing. This milestone figure highlights the significant role played by Ginnie Mae in facilitating liquidity in the mortgage market and meeting the demand for affordable housing finance by providing a reliable source of investment in government-backed mortgages.
Freddie Mac focused on transferring credit risk on certain STACR debt note offerings in 2020, contributing to agency MBS stability.
The statistic “Freddie Mac focused on transferring credit risk on certain STACR debt note offerings in 2020, contributing to agency MBS stability” indicates that Freddie Mac, a government-sponsored enterprise that operates in the secondary mortgage market, implemented strategies in 2020 to manage credit risk associated with certain Structured Agency Credit Risk (STACR) debt note offerings. By transferring credit risk to other parties through these offerings, Freddie Mac aimed to enhance the stability of agency Mortgage-Backed Securities (MBS). This approach helps to protect Freddie Mac and investors from potential losses related to defaults on underlying mortgages, which ultimately supports the overall health and reliability of the agency MBS market.
In the second quarter of 2021, the delinquency rate for mortgage loans on residential properties was approximately 6.38%.
The delinquency rate for mortgage loans on residential properties in the second quarter of 2021 refers to the percentage of mortgages that were past due or in default during that time period. With a rate of approximately 6.38%, it indicates that about 6.38% of all mortgage loans on residential properties were not being paid as scheduled. This statistic is crucial in assessing the overall health of the housing market and the financial well-being of homeowners. A higher delinquency rate can suggest economic distress or challenges in meeting mortgage obligations, while a lower rate typically indicates a more stable and sustainable market environment.
In 2020, Fannie Mae’s Single-Family serious delinquency rate dropped 0.99 percentage points to 2.71%.
The statistic indicates that in the year 2020, Fannie Mae’s Single-Family serious delinquency rate decreased by 0.99 percentage points, reaching a level of 2.71%. A serious delinquency refers to a mortgage that is 90 days or more overdue. This drop in the delinquency rate suggests an improvement in loan performance and borrower repayment behavior within Fannie Mae’s Single-Family mortgage portfolio over the course of 2020. Lower delinquency rates are generally positive indicators for the housing market and the overall economy, as they reflect a reduced risk of defaults and foreclosures on mortgages held by Fannie Mae.
According to the US Fed Reserve, as of June 2021, the total marketable treasury securities held by the Fed were $2.45 trillion.
The statistic indicates that as of June 2021, the US Federal Reserve held marketable Treasury securities totaling $2.45 trillion. Marketable Treasury securities are government bonds that can be bought and sold in financial markets. The Federal Reserve’s holding of these securities is a key tool in implementing monetary policy to control interest rates and support the economy. By buying Treasury securities, the Fed injects money into the financial system, increasing the money supply and lowering interest rates. This can help stimulate economic activity during times of recession or crisis. The significant amount of Treasury securities held by the Fed demonstrates the central bank’s active role in managing the economy and financial markets.
In 2020, agency MBS trading volumes averaged over $600 billion daily.
The statistic indicates that in 2020, the trading volumes of agency mortgage-backed securities (MBS) averaged over $600 billion on a daily basis. This represents the total value of agency MBS securities that were bought and sold in the market each day throughout the year. Agency MBS are a type of mortgage-backed security that is guaranteed by government-sponsored enterprises such as Fannie Mae and Freddie Mac. The high trading volume suggests a significant level of activity and liquidity in the agency MBS market, reflecting the interest and participation of investors in these securities as well as the overall health and activity of the mortgage market during that period.
As of July 2021, the total value of Agency MBS purchased by the Fed’s Real Estate Investment Trust was approximately $2.3 trillion.
The statistic states that as of July 2021, the Federal Reserve’s Real Estate Investment Trust had purchased an estimated total value of Agency Mortgage-Backed Securities (MBS) amounting to around $2.3 trillion. This figure represents the cumulative amount of MBS securities acquired by the Fed’s Real Estate Investment Trust in its efforts to support the housing market and maintain stability in the financial system. The purchases of MBS are a part of the Fed’s broader monetary policy tools, aimed at influencing interest rates and addressing economic challenges, especially in times of crisis such as the COVID-19 pandemic. The significant scale of these purchases highlights the critical role played by the Federal Reserve in managing the economy and the financial markets.
Non-agency MBS issuance exceeded $700 billion in 2020, its highest level since 2007.
The statistic shows that the issuance of non-agency mortgage-backed securities (MBS) in 2020 surpassed the $700 billion mark, reaching levels not seen since 2007. Non-agency MBS are securities backed by mortgages that are not guaranteed by government-sponsored enterprises like Fannie Mae or Freddie Mac. The increase in issuance indicates a resurgence in the market for private-label MBS, which had declined significantly after the 2008 financial crisis. This uptick may be driven by various factors such as a strong demand for mortgage-related investments, low interest rates, and investors seeking higher yields in a low-yield environment. Overall, the significant increase in non-agency MBS issuance suggests a renewed confidence in the housing market and the broader economy.
As of Q3 2020, Fannie Mae and Freddie Mac held combined agency MBS issuance of about $3.9 trillion.
The statistic indicates that as of the third quarter of 2020, Fannie Mae and Freddie Mac collectively held a combined issuance of agency Mortgage-Backed Securities (MBS) totaling around $3.9 trillion. Fannie Mae and Freddie Mac are government-sponsored enterprises that play a significant role in the housing finance market by providing liquidity to the mortgage industry. MBS are securities composed of a pool of mortgages that are guaranteed by either Fannie Mae or Freddie Mac, which helps to attract investors by mitigating credit risk. The $3.9 trillion in agency MBS issuance reflects the extent to which these two enterprises have been involved in providing funding for the mortgage market, highlighting their key role in supporting the housing sector and the broader economy.
In 2021, Fannie Mae MBS issuance was $1.13 trillion, Freddie Mac MBS issuance was $822 billion, and Ginnie Mae MBS issuance was $748 billion.
The statistic provided shows the mortgage-backed securities (MBS) issuance amounts for three major government-sponsored enterprises in 2021. Fannie Mae issued $1.13 trillion in MBS, followed by Freddie Mac with $822 billion and Ginnie Mae with $748 billion. These numbers reflect the total value of MBS securities issued by each entity, which represent loans secured by mortgages. The issuance amounts indicate the level of activity in the mortgage market and the extent to which these entities are providing liquidity for mortgage lending in the housing market. The high levels of issuance suggest robust activity within the mortgage sector during the specified timeframe.
In Q4 2020, agency MBS total net issuance reached $422 billion.
In Q4 2020, agency mortgage-backed securities (MBS) total net issuance amounted to $422 billion. This statistic represents the total face value of agency MBS securities issued during the fourth quarter of 2020, after accounting for any repayments or redemptions. MBS are securities backed by a pool of mortgages and are issued or guaranteed by government-sponsored entities such as Fannie Mae, Freddie Mac, or Ginnie Mae. The $422 billion in net issuance indicates strong activity in the MBS market during that quarter, potentially driven by factors such as low interest rates or increased demand for mortgage-related investments.
On average, agency MBS constitutes about 97% of Ginnie Mae’s securities since 2011.
This statistic indicates that agency mortgage-backed securities (MBS) issued by Ginnie Mae have consistently made up the majority of Ginnie Mae’s securities portfolio since 2011, with an average allocation of about 97%. Agency MBS are securities that represent an ownership interest in a pool of mortgage loans that are guaranteed by government-sponsored enterprises like Ginnie Mae. The high proportion of agency MBS in Ginnie Mae’s portfolio highlights the significant role these securities play in the organization’s overall investment strategy and risk management. This statistic suggests that Ginnie Mae heavily relies on agency MBS to generate income and facilitate the flow of capital into the housing market.
Mortgage-backed securities (MBS) constituted 22.7% of the total U.S. bond market as of December 2020.
The statistic indicates that as of December 2020, mortgage-backed securities (MBS) accounted for 22.7% of the total U.S. bond market. MBS are financial instruments that represent an ownership interest in a pool of mortgage loans, and they are backed by the cash flows from those underlying mortgages. This high percentage suggests that MBS played a significant role in the U.S. bond market at that time, highlighting the importance of the mortgage market within the broader fixed-income landscape. Investors looking for exposure to the housing market and its associated risks and returns may have been particularly interested in MBS as part of their investment portfolios.
References
0. – https://www.www.sifma.org
1. – https://www.www.federalreserve.gov
2. – https://www.www.refinitiv.com
3. – https://www.freddiemac.gcs-web.com
4. – https://www.www.mba.org
5. – https://www.libertystreeteconomics.newyorkfed.org
6. – https://www.www.fanniemae.com
7. – https://www.ticdata.treasury.gov
8. – https://www.www.ginniemae.gov
9. – https://www.investor.vanguard.com
