Mortgage bonds can impact home buyers in a number of ways.
Mortgage rates: When the demand for mortgage bonds increases, the price of mortgage bonds goes up. This, in turn, can lead to higher mortgage rates for home buyers.
Mortgage availability: When there is a lot of demand for mortgage bonds, lenders may be less willing to offer mortgages to home buyers. This is because lenders may prefer to sell mortgages to investors rather than keep them on their own books.
Mortgage terms: When the demand for mortgage bonds is high, lenders may offer shorter-term mortgages to home buyers. This is because shorter-term mortgages are less risky for lenders.
Overall, mortgage bonds can have a significant impact on the cost of home ownership for home buyers. Home buyers should be aware of the potential impact of mortgage bonds on their mortgage rates, availability, and terms when they are considering buying a home.
