Fannie Mae and Freddie Mac have begun placing sizable orders to purchase mortgage-backed securities, stepping into a market roiled by widening bond spreads and a surge in volatility, according to a person with direct knowledge of the matter.

As rising energy prices and growing inflation fears make corporate bonds look increasingly risky, big money managers including State Street and Voya Investment Management have been looking at buying mortgage bonds and other securitized debt instead.

Despite higher oil and gas prices, higher mortgage rates and no indication that the conflict in Iran is ending, existing home sales still posted another positive week. However, with every week that goes by with mortgage rates above 6.25% and heading higher, it gets harder to maintain that growth, an