NEW YORK: The Federal Reserve bought $21.55 billion of agency mortgage-backed securities from March 7 through 13, up from $18.9 billion it bought in the prior week, the New York Federal Reserve Bank said on Thursday.
The US central bank sold $3.35 billion in mortgage securities guaranteed by Fannie Mae, Freddie Mac or the Government National Mortgage Association, or Ginnie Mae, in the latest week. It sold $600 million the previous week, the New York Fed said on its Website.
On Sept. 14, the Fed began a $40 billion monthly increase in MBS purchases, its third round of large-scale bond buying, known as QE3, in an attempt to support the housing recovery and boost economic growth.
Since October 2011, the Fed has been using funds from principal payments on the agency debt and agency MBS it holds to reinvest in agency MBS, a move to help the housing market.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>*
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