Foreign Sources Of Mortgage Capital Dry Up
There was a stunning report from the US treasury on MarketWatch. "Foreign central banks became net sellers of U.S. assets for the first time in 19 months in March, helping to slow foreign capital inflows into the United States by 46%, the Treasury Department said Monday."
"Net capital inflows fell to $45.7 billion in March from $84.1 billion in February."
But the real shocker was the decline in net purchases of US Government Agency bonds, like those that Fannie Mae issues.
From private and official sources, in $billions:
Dec '04 25.6, 1.0
Jan '05 19.9, 6.1
Feb '05 10.9, 5.2
Mar '05 6.5, 1.0
To put that in context, from all sources in 2004, foreign buyers of agency bonds purchased $226 billion. The real lenders may be calling an end to the housing bubble.