{"id":1557,"date":"2016-05-12T02:32:18","date_gmt":"2016-05-12T02:32:18","guid":{"rendered":"http:\/\/asadkarim.co.uk\/?p=1557"},"modified":"2016-04-25T08:28:00","modified_gmt":"2016-04-25T08:28:00","slug":"us-mortgage-backed-securities-owned-by-the-us-federal-reserve","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=1557","title":{"rendered":"US Mortgage Backed Securities owned by the US Federal Reserve."},"content":{"rendered":"<p>The US Central Bank, the Fed (The US Federal Reserve) has a vast balance sheet<\/p>\n<p><a href=\"https:\/\/www.federalreserve.gov\/releases\/h41\/current\/h41.htm\" target=\"_blank\">https:\/\/www.federalreserve.gov\/releases\/h41\/current\/h41.htm<\/a><\/p>\n<p>Just over<strong> $4,500 Billion<\/strong> ($4.5 Trillion)<\/p>\n<p>One line item of the assets that makes up the <strong>$4,500 Billion<\/strong> are mortgage back securities.<br \/>\nThese are effectively the debt of mortgages that the US Fed now owns after its programme of bond purchases since the start of finance crisis.<\/p>\n<p>These are worth <strong>$1,762 Billion.<\/strong><\/p>\n<p>Effectively these are mortgages owned by the US Fed. US homeowners are paying the debt back via their monthly payments.<\/p>\n<p>One can make some very rough calculations on this $1,762 Billion figure<\/p>\n<p>If the <strong>average US house price is say $190,000<\/strong>, and say the mortgage on this house is say $175,000.<\/p>\n<p>One could make a rough guess of mortgages held by the US Fed.<\/p>\n<p>Mortgage Back Securities owned by the US Fed: $1,762 Billion<\/p>\n<p>$1,762 Billion = <strong>$1,762,000 million<\/strong><\/p>\n<p>Average US Mortgage = $175,000 = <strong>$0.175 million<\/strong><\/p>\n<p>This number of mortgages owned by the US Fed = $1,762,000 million \/ $0.175 million<\/p>\n<p>Thus = <strong>10,068,571 Mortgages.<\/strong><\/p>\n<p><strong>That is over 10 Million US Mortgages (homes) are owned by The US Federal Reserve<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Central Bank, the Fed (The US Federal Reserve) has a vast balance sheet https:\/\/www.federalreserve.gov\/releases\/h41\/current\/h41.htm Just over $4,500 Billion ($4.5 Trillion) One line item of the assets that makes up the $4,500 Billion are mortgage back securities. These are effectively the debt of mortgages that the US Fed now owns after its programme of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1557","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/1557","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1557"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/1557\/revisions"}],"predecessor-version":[{"id":1558,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/1557\/revisions\/1558"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}