Fed seen slowing mortgage bond buying-Credit Suisse

NEW YORK May 21 (Reuters) - The Federal Reserve will probably slow the rate of mortgage-backed securities purchases this year so it can stretch its program of lowering home loan rates through 2010, Credit Suisse said on Thursday.

"We believe that the Fed involvement in the MBS market will be necessary well into 2010, the analysts said in a research note. "The Fed will have to slow down its MBS purchases in 2009, leaving it room to remain engaged in 2010."

The Fed has purchased $457 billion in mortgage bonds issued by Fannie Mae, Freddie Mac and Ginnie Mae year-to-date to help boost prices that lenders can get for loans in the secondary market. It has pledged to buy up to $1.25 trillion in MBS.

(Reporting by Al Yoon, Editing by Chizu Nomiyama)