Mortgage lending continues strong

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Mortgage lending, a major component of the US bond market, continued strong in Q1 2006, as shown in Federal Reserve flow of funds table F217.

The four largest suppliers of mortgage funds continue to be commercial banks, savings institutions, agency mortgage pools, and issuers of asset-backed securities, accounting for 86.8% of the market in Q1 2006.

In Q1 2006, funds flowing to the mortgage market were up 33.5% compared to the same quarter of 2005, and up 7.5% over the year 2005.

A high level of mortgage borrowing helped to push long-bond rates higher in Q1 2006.

Breakdown of mortgage borrowing