Graph and download economic data for Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Domestically Chartered Commercial Banks (H8B1301NDMCMG) from Aug 2009 to May 2025 about charter, mortgage-backed, agency, securities, Treasury, domestic, banks, depository institutions, and USA.

The year 2021 saw the peak in issuance of residential mortgage backed securities (MBS), at *** trillion U.S. dollars. Since then, MBS issuance has slowed, reaching *** trillion U.S. dollars in 2023. What are mortgage backed securities? A mortgage backed security is a financial instrument in which mortgages are bundled together and sold to investors. The idea is that the risk of these individual mortgages is pooled when they are packaged together. This is a sound investment policy, unless the foreclosure rate increases significantly in a short amount of time. Mortgage risk Since mortgages are loans backed by an asset, the house, the risk is often considered relatively low. However, the loan maturities are very long, sometimes decades, meaning lenders must factor in the risk of a shift in the economic climate. As such, interest rates on longer mortgages tend to be higher than on shorter loans. The ten-year treasury yield influences these rates, since it is a long-term rate that most investors accept as risk-free. Additionally, a decline in the value of homeowner equity could lead to a situation where the debtor is “underwater” and owes more than the home is worth.

The volume of mortgage-backed securities issuance fluctuated significantly in the United States between 2014 and 2024. In 2024, the volume of the mortgage-backed securities issuance in the United States amounted to 1.6 trillion U.S. dollars.

Graph and download economic data for Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions (H8B1301NFRCQG) from Q4 2009 to Q1 2025 about mortgage-backed, agency, securities, Treasury, and USA.

The weekly average value of mortgage-backed securities held by Federal Reserve Banks in the United States decreased in the second half of 2022 and the first half of 2023, after a period of sharp increase in 2020 and 2021. As of May 17, 2023, the weekly average value of mortgage-backed securities held by the Federal Reserve amounted to roughly 2.57 trillion U.S. dollars.

United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks was 2690.38020 Bil. of U.S. $ in June of 2025, according to the United States Federal Reserve. Historically, United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks reached a record high of 2995.76070 in February of 2022 and a record low of 958.72110 in October of 2009. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks - last updated from the United States Federal Reserve on July of 2025.

United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks was -0.40000 % Chg. at Annual Rate in January of 2025, according to the United States Federal Reserve. Historically, United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks reached a record high of 18.70000 in October of 2010 and a record low of -10.30000 in October of 2022. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), All Commercial Banks - last updated from the United States Federal Reserve on May of 2025.

Mortgage Backed Security Market Outlook

The global mortgage-backed security (MBS) market size was valued at approximately $2.1 trillion in 2023 and is projected to reach $3.5 trillion by 2032, growing at a CAGR of 5.5%. A key driver of this growth is the increasing demand for mortgage-backed securities due to their ability to provide liquidity and diversify investment portfolios. The growth is further stimulated by favorable government policies and increased homeownership rates, which collectively bolster the issuance of new MBS.

One of the primary growth factors for the MBS market is the low-interest-rate environment, which has persisted over recent years. This scenario has encouraged borrowing and refinancing activities, leading to a higher number of mortgages that can be securitized. Moreover, the stability and relatively lower risk associated with MBS compared to other investment vehicles make them an attractive option for institutional investors. Additionally, advancements in financial technology have streamlined the process of bundling and selling these securities, increasing market efficiency.

Another significant factor contributing to the expansion of the MBS market is the role of government-sponsored enterprises (GSEs) such as Fannie Mae, Freddie Mac, and Ginnie Mae. These GSEs guarantee a significant portion of the residential MBS, providing a safety net that minimizes risk for investors. The support from these entities ensures a continuous and reliable flow of investment into the housing sector, which in turn stimulates further securitization of mortgages. Moreover, government policies aimed at bolstering housing finance systems in emerging markets are expected to create additional opportunities for growth.

The diversification of mortgage products, including the rise in demand for commercial mortgage-backed securities (CMBS), is another driving force for the market. Commercial real estate has shown robust growth, and investors are increasingly looking towards CMBS as a way to gain exposure to this sector. The structured nature of these securities, offering tranches with varying risk and return profiles, allows investors to tailor their investment strategies according to their risk tolerance.

In the context of the MBS market, Lenders Mortgage Insurance (LMI) plays a crucial role in facilitating homeownership, especially for borrowers who are unable to provide a substantial down payment. LMI is a type of insurance that protects lenders against the risk of borrower default, allowing them to offer loans with lower down payment requirements. This insurance is particularly significant in markets where home prices are high, and saving for a large deposit is challenging for many potential homeowners. By mitigating the risk for lenders, LMI enables more individuals to enter the housing market, thereby supporting the overall growth of mortgage-backed securities. As a result, LMI not only aids in increasing homeownership rates but also contributes to the liquidity and stability of the housing finance system.

Type Analysis

The mortgage-backed security market is bifurcated into Residential MBS and Commercial MBS. Residential MBS (RMBS) dominate the market due to the larger volume of residential mortgages compared to commercial ones. RMBS are typically backed by residential loans, including home mortgages, and are considered less risky. They offer a steady income stream to investors through mortgage payments made by homeowners. The demand for RMBS is bolstered by the high rate of homeownership and the continuous flow of new mortgages.

On the other hand, Commercial MBS (CMBS) are seeing increased traction due to their attractive yields and the growth of the commercial real estate sector. CMBS are backed by loans on commercial properties such as office buildings, retail centers, and hotels. They offer investors exposure to the commercial property market, which is often less correlated with the residential real estate market, providing an additional layer of diversification. The complexity and higher risk associated with CMBS attract sophisticated investors looking for higher returns.

Within RMBS, the market is further segmented into agency RMBS and non-agency RMBS. Agency RMBS are guaranteed by GSEs, making them more secure and attractive to risk-averse investors. Non-agency RMBS, though not backed by GSEs, offer higher yields and are appealing to investors with a higher risk appetite. The interplay betw

United States PDS: Transactions: Mortgage-Backed Securities: Non-Agency MBS: Non-Agency Residential MB data was reported at 2.037 USD bn in 30 Apr 2025. This records an increase from the previous number of 1.398 USD bn for 23 Apr 2025. United States PDS: Transactions: Mortgage-Backed Securities: Non-Agency MBS: Non-Agency Residential MB data is updated weekly, averaging 1.246 USD bn from Apr 2013 (Median) to 30 Apr 2025, with 631 observations. The data reached an all-time high of 5.311 USD bn in 20 Feb 2019 and a record low of 78.000 USD mn in 30 Dec 2020. United States PDS: Transactions: Mortgage-Backed Securities: Non-Agency MBS: Non-Agency Residential MB data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.Z041: Primary Dealer Statistics: Transactions.

United States PDS: Transactions: Mortgage-Backed Securities: Non-Agency MBS: Other CMBS data was reported at 1.144 USD bn in 30 Apr 2025. This records an increase from the previous number of 883.000 USD mn for 23 Apr 2025. United States PDS: Transactions: Mortgage-Backed Securities: Non-Agency MBS: Other CMBS data is updated weekly, averaging 856.000 USD mn from Apr 2013 (Median) to 30 Apr 2025, with 631 observations. The data reached an all-time high of 3.591 USD bn in 20 Oct 2021 and a record low of 62.000 USD mn in 30 Dec 2020. United States PDS: Transactions: Mortgage-Backed Securities: Non-Agency MBS: Other CMBS data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.Z041: Primary Dealer Statistics: Transactions.

United States PDS: Net Positions: Mortgage-Backed Securities: Non-Agency MBS: Non-Agency Residential MBS data was reported at 8.650 USD bn in 30 Apr 2025. This records an increase from the previous number of 8.520 USD bn for 23 Apr 2025. United States PDS: Net Positions: Mortgage-Backed Securities: Non-Agency MBS: Non-Agency Residential MBS data is updated weekly, averaging 7.340 USD bn from Apr 2013 (Median) to 30 Apr 2025, with 631 observations. The data reached an all-time high of 19.299 USD bn in 24 Jul 2013 and a record low of 2.803 USD bn in 14 Oct 2020. United States PDS: Net Positions: Mortgage-Backed Securities: Non-Agency MBS: Non-Agency Residential MBS data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.Z040: Primary Dealer Statistics: Net Positions.

United States PDS: Transactions: Mortgage-Backed Securities: Federal Agency & GSE MBS: All Other Federal Agency & GSE Residential MBS data was reported at 3.400 USD bn in 30 Apr 2025. This records an increase from the previous number of 2.627 USD bn for 23 Apr 2025. United States PDS: Transactions: Mortgage-Backed Securities: Federal Agency & GSE MBS: All Other Federal Agency & GSE Residential MBS data is updated weekly, averaging 2.627 USD bn from Apr 2013 (Median) to 30 Apr 2025, with 631 observations. The data reached an all-time high of 9.222 USD bn in 11 Nov 2020 and a record low of 474.000 USD mn in 28 Dec 2022. United States PDS: Transactions: Mortgage-Backed Securities: Federal Agency & GSE MBS: All Other Federal Agency & GSE Residential MBS data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.Z041: Primary Dealer Statistics: Transactions.

Treasury plans to sell up to $10 billion of securities per month, subject to market conditions. This is in addition to principal paydowns (currently ranging between $2 and $4 billion per month). If the sales proceeded at the full $10 billion per month, the portfolio would be unwound in whole over approximately one year, depending on future rates of prepayments. If market conditions change and Treasury slows asset sales, it is possible that the unwind will take a longer period of time. Excel data shows the total principal and interest that the Treasury received from purchase to sell off of the MBS securities.

United States PDS: Net Positions: Mortgage-Backed Securities: Federal Agency and GSE MBS: Federal Agency and GSE Residential Pass-Through MBS Specified Pools data was reported at 505.933 USD bn in 30 Apr 2025. This records an increase from the previous number of 502.564 USD bn for 23 Apr 2025. United States PDS: Net Positions: Mortgage-Backed Securities: Federal Agency and GSE MBS: Federal Agency and GSE Residential Pass-Through MBS Specified Pools data is updated weekly, averaging 338.467 USD bn from Jan 2022 (Median) to 30 Apr 2025, with 174 observations. The data reached an all-time high of 505.990 USD bn in 16 Apr 2025 and a record low of 177.486 USD bn in 20 Apr 2022. United States PDS: Net Positions: Mortgage-Backed Securities: Federal Agency and GSE MBS: Federal Agency and GSE Residential Pass-Through MBS Specified Pools data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.Z040: Primary Dealer Statistics: Net Positions.

Among the 12 Federal Reserve Banks of the Federal Reserve System in the United States, the Federal Reserve Bank of New York held by far the highest value of mortgage-backed securities in 2023. With approximately 1.36 trillion U.S. dollars worth of securities, the Federal Reserve Bank of New York held over 50 percent of the Fed's total mortgage-backed securities. It was followed by the Federal Reserve Bank of San Francisco, which held roughly 228 billion U.S. dollars worth of securities.

United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions was -17.10000 % Chg. at Annual Rate in April of 2025, according to the United States Federal Reserve. Historically, United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions reached a record high of 229.50000 in May of 2015 and a record low of -217.60000 in January of 2023. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions - last updated from the United States Federal Reserve on May of 2025.

United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions was 20.60000 % Chg. at Annual Rate in January of 2025, according to the United States Federal Reserve. Historically, United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions reached a record high of 89.40000 in April of 2015 and a record low of -104.30000 in January of 2023. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Treasury and Agency Securities: Mortgage-Backed Securities (MBS), Foreign-Related Institutions - last updated from the United States Federal Reserve on May of 2025.

MBS Market Outlook

The global mortgage-backed securities (MBS) market size was valued at approximately $2.5 trillion in 2023 and is projected to reach around $3.8 trillion by 2032, growing at a compound annual growth rate (CAGR) of 4.5%. This growth is driven by factors such as increasing demand for diversified investment products, the stability of real estate markets in key regions, and the rising involvement of government-sponsored entities in the securitization process.

One of the primary growth factors of the MBS market is the increasing demand for investment diversification. Investors are continually on the lookout for stable yet lucrative investment opportunities, and MBS provides a unique avenue by offering a relatively safer investment backed by real estate assets. The combination of regular income streams and the potential for capital appreciation makes MBS an attractive option for both institutional and retail investors. Furthermore, the growing sophistication of financial markets globally ensures better transparency and understanding of MBS products, thereby boosting investor confidence.

Another significant growth factor is the stability and growth of the real estate market, particularly in developed regions such as North America and Europe. As the real estate market continues to show robust growth, the underlying assets backing these securities become more valuable and stable, thus enhancing the attractiveness of MBS. Additionally, favorable regulatory frameworks in these regions have facilitated the smooth functioning and growth of the MBS market. Government regulations often play a pivotal role in providing the necessary safeguards and ensuring market stability, which in turn attracts more investors.

The increasing involvement of government-sponsored entities such as Fannie Mae, Freddie Mac, and Ginnie Mae in the United States has also significantly contributed to the growth of the MBS market. These entities not only provide a level of security and credibility but also ensure a steady supply of MBS products in the market. Their active participation helps in maintaining market liquidity and provides a safety net for investors, making the MBS market more resilient to economic downturns. Additionally, similar government-backed initiatives in other regions are expected to drive the market further in the coming years.

From a regional perspective, North America remains the largest market for MBS, driven primarily by the well-established real estate and financial markets in the United States. The presence of major market players and a favorable regulatory environment further solidify its leading position. Europe follows closely, with increasing investments in real estate and government initiatives to boost the financial markets. The Asia Pacific region is expected to witness the highest growth rate, owing to rapid urbanization, increasing disposable incomes, and favorable government policies aimed at boosting the housing sector. Latin America and the Middle East & Africa regions are also expected to show steady growth, driven by improving economic conditions and increasing investment activities.

Type Analysis

The MBS market can be segmented by type into Residential MBS (RMBS) and Commercial MBS (CMBS). Residential Mortgage-Backed Securities (RMBS) are typically backed by residential real estate properties. These securities are attractive to investors due to the low default rates associated with residential properties. The demand for RMBS is particularly high in regions with stable and growing residential real estate markets, such as North America and Europe. The growing trend of homeownership, along with favorable mortgage rates, has significantly contributed to the growth of the RMBS segment. Additionally, the increasing availability of data and analytics has improved the risk assessment associated with RMBS, making it a more attractive investment option.

Commercial Mortgage-Backed Securities (CMBS) are backed by commercial real estate properties, such as office buildings, shopping malls, and hotels. The performance of CMBS is closely tied to the health of the commercial real estate market. With the recovery of the global economy post the COVID-19 pandemic, the commercial real estate market has shown significant signs of recovery, thereby boosting the demand for CMBS. Investors are increasingly looking at CMBS as a means to diversify their portfolios, given the attractive yields and potential for capital appreciation. Moreover, the increasing trend of mixed-use developments and smart cities is expected to drive the demand for CMBS in the coming years.&

United States PDS: Transactions: Mortgage-Backed Securities: Federal Agency & GSE MBS: Federal Agency & GSE Residential Pass-Through MBS: Cash Transactions: Specified Pools data was reported at 16.817 USD bn in 30 Apr 2025. This records a decrease from the previous number of 20.084 USD bn for 23 Apr 2025. United States PDS: Transactions: Mortgage-Backed Securities: Federal Agency & GSE MBS: Federal Agency & GSE Residential Pass-Through MBS: Cash Transactions: Specified Pools data is updated weekly, averaging 25.109 USD bn from Jan 2022 (Median) to 30 Apr 2025, with 174 observations. The data reached an all-time high of 83.395 USD bn in 09 Oct 2024 and a record low of 6.077 USD bn in 01 Jan 2025. United States PDS: Transactions: Mortgage-Backed Securities: Federal Agency & GSE MBS: Federal Agency & GSE Residential Pass-Through MBS: Cash Transactions: Specified Pools data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.Z041: Primary Dealer Statistics: Transactions.

The statistic represents the volume of U.S. asset-backed securities outstanding from 1990 to 2009. In 2008, the volume of U.S. asset-backed securities outstanding was approximately 2.7 trillion U.S. dollars.