Researchers at the Federal Reserve determined that, contrary to “the prevailing view in economics literature,” quantitative easing initiatives by the Fed over the past few years had an impact on the pricing and yields for agency MBS. In a new study, Fed analysts Diana Hancock and Wayne Passmore found that the central bank’s purchases of Treasury securities and agency MBS since 2008 lowered MBS yields and mortgage interest rates by more than what would have been suggested by changes in market expectations alone. Hancock and Passmore said...