The dearth of homes for sale has underpinned the housing market’s surprising resilience and may further lift home prices despite reduced affordability.
Although affordability remains an obstacle, recent data offer reasons to be more constructive as broader conditions still appear supportive of home prices.
We expect further weakening in U.S. home prices, although not a sharp decline, as higher mortgage rates pressure affordability and induce many homeowners not to move.
Agency mortgage-backed securities (MBS) have faced unique challenges in 2022, but these challenges also create attractive new opportunities for active management.
Worried about how tapering may affect the mortgage market? PIMCO believes the impact will be less significant than you may think. Daniel Hyman, head of agency MBS portfolio management explains three reasons why.