Technical, page-1047

i have said several times yesterday and today that the cutting back on home mortgages was a blow to the market that was not clear during the CC but as it was realized after the market closed Wednesday its effect had a major impact. Here is a link to an article that does a much better job than I ever could explaining it. I have also put in some quotes to stir interest. I would skip my quotes and just read the whole thing carefully but it is up to all of you.
The Fed hits the housing market with another economic shock—it won’t be the last (msn.com)
These policy moves are also a direct hit to arguably one of inflation’s biggest drivers over the past year: The red-hot U.S. housing market. In the Fed’s eyes, it can’t rein in inflation unless unsustainable home price growth—which is up 19.8% over the past 12 months—decelerates significantly.


Between June and August, the central bank plans to unwind $30 billion in Treasury debt and $18 billion mortgage-backed debt each month. Then in September, the Fed will double the amount of debt it lets expire each month to $60 billion in Treasury debt and $35 billion in mortgage-backed debt. As that debt expires, it could put upward pressure on mortgage rates.