Fannie and Freddie have over $6.5 trillion in mortgage and guarantees. Throw in $1.25 trillion for the Fed and billions at BofA, Citi, Wells, JPMChase and other banks. Our financial system is exposed to 5% mortgages that are 30 years in maturity (and little chance of prepayment). What will happen when inflation heats up and Treasury rates and mortgage rates go up?