Fannie, Freddie mortgage buying unlikely to drive rates

These summaries are generated by an LLM, but edited by humans.Relatively low today, because nearly half of homeowners sit on mortgages of roughly 3% or less, so rates would need a large rally to trigger widespread refinancing. However, the longer rates stay high and new mortgages carry higher coupons, the greater future refinance exposure becomes, says GAM’s Tom Mansley.Pre‑crisis, Fannie and Freddie hedged large duration mismatches by shorting Treasuries, shorting futures, paying fixed on swaps and buying ...