Fed Buys Mortgage Bonds For $3.2B

Reuters reported that the Federal Reserve has bought $3.173 billion of agency mortgage-backed securities in the week from Dec. 22 to Dec. 28, compared with $14.409 billion purchased the previous week.

In a move to help the housing market begun in October 2011, the The Federal Reserve has been using funds from principal payments on the agency debt and agency mortgage-backed securities, or MBS, it holds to reinvest in agency MBS.

The Federal Reserve Bank of New York said on its website that the Fed did not sell mortgage securities guaranteed by Fannie Mae FNMA.OB, Freddie Mac FMCC.OB or the Government National Mortgage Association, or Ginnie Mae, in the latest week. It sold none the prior week.

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