The economic impact of Covid on the US housing and mortgage market

Covid-19 has fundamentally reshaped consumer behaviour. Combined with drastic changes in federal government policy, the impact on financial markets will be long-lasting. Today, the financial markets are battling a new set of economic issues as the US enters the endemic phase of the virus amid rising interest rates and inflation. 

In this paper, we review the impact on the US mortgage market through the lens of portfolio risk observed by the FactSet risk model, and explain why an intuitive and flexible risk model can help investors to better navigate through sudden changes in the financial market.