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US Mortgages
Before 2020, less than 4% of outstanding mortgages carried interest rates below 3%.

Today, a significant 23% of these mortgages boast rates below 3%.

The portion of borrowers with rates between 4% and 5% has dropped from 40% to 20%, while only 9% face interest rates of 6% or higher.


This data holds crucial implications for the US housing market, highlighting a divide between fixed-rate and adjustable-rate funded markets. It also enhances the appeal of agency MBS as an asset class, as their prepayment risk is notably low, making MBS trade more like treasuries.

@kobeissiletter #GiorgioVintani #TomBaldacci #housing #mortgages #realestate #mbs

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