Fed's Schmid says Fed mortgages holdings still lowering yields in sector

NEW YORK, Feb 25 (Reuters) - Federal Reserve Bank of Kansas City President Jeffrey Schmid said the current size of central bank mortgage bond holdings has lowered borrowing costs for that sector.

Mortgage rates are “probably 75 to 100 basis points lower today than they would otherwise be” due to the current size of Fed mortgage bond holdings, Schmid said in an appearance before the Economic Club of Colorado.