Fed buys $6.8 billion mortgage bonds, sells none
NEW YORK (Reuters) - The Federal Reserve bought $6.8 billion in agency mortgage-backed securities from May 3 to May 9, down slightly from the $7.0 billion it bought in the prior week, the New York Federal Reserve said on Thursday.
The central bank sold no mortgage securities guaranteed by Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB) or the Government National Mortgage Association (Ginnie Mae), the same as the previous week, the New York Fed said on its website.
From the start of October, the Fed began to use funds from principal payments on the agency debt and agency MBS it holds to reinvest in agency MBS in an effort to hold down mortgage interest rates and support the U.S. housing market.
(Reporting by Richard Leong; Editing by Dan Grebler)