The buyers are the same institutions that have always bought mortgage-backed securities: pension funds, insurers, banks, and money managers. MBS trade in an open market like any other bond, and the investors who buy at the Fannie Mae and Freddie Mac issuances are the ones who step in when the Fed steps back. There is no single replacement buyer, just a market that clears at a price. On home prices, the link runs entirely through rates. The Fed pulling back on MBS only pressures housing if it pushes mortgage rates meaningfully higher, which worsens affordability and shrinks the pool of buyers who can qualify. When new mortgage issuance is already low, removing that demand adds far less pressure than it would in a heavy-origination stretch. And the Fed's own mandate includes price stability, so a disorderly sell-off that spikes rates works against its stated goals. Fed leadership has generally talked about wanting moderation in home prices, and never a crash. So watch what MBS supply and demand do to mortgage rates, because rates are the transmission path to housing. The Mortgage News Daily rate table, right here on our site, is a good place to follow that day to day. Nobody can promise where rates or prices go, but an aggressive, price-crashing Fed sell-off is not something we would organize a buying decision around.