U.S. Fed buys $21.9 bln of mortgage bonds, sells $2.4 bln

NEW YORK Thu Jan 17, 2013 4:11pm EST

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NEW YORK Jan 17 (Reuters) - The Federal Reserve bought $21.9 billion in agency mortgage-backed securities Jan. 10-16, less than the $29.9 billion it bought in the prior week, the New York Federal Reserve Bank said on Thursday.

The U.S. central bank sold $2.4 billion of mortgage securities guaranteed by Fannie Mae, Freddie Mac or the Government National Mortgage Association, or Ginnie Mae, in the latest week. It sold $9.4 billion 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, which was an earlier move to help the housing market.

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Comments (1)
richierich254 wrote:
that means potentially alot of people just got screwed. This happened to us. We bought in 2007 conventional with 20% down. 3 Months later boa rep called and said refi at lower rate. Seemed like a no brainer, they didnt tell us it was fha and being first time home buyers we didnt know to ask, we gave up all our rights to the principal reduction program and at best were offered hamp at 4.25%, 1st day payment on a 30 yr mtg and principal same! 40% underwater and 40k down plus payments gone! Ginnie mae has us now and they are even making it difficult to short sale! The bank will not only keep this money but collect on pmi, they make a ton and we lose everything and have to start over. Contacted holder, congressman, senator, no reply!!!!!!!!! Arent the gennie mae people the old goldman sachs people. Crooks awarded with a govt backed bank???????? We did it the right way and put money down, never pulled out and because the banks defrauded us by manipulating the market we lose. Welcome to the new america, as a veteran i am disgusted!

Jan 17, 2013 4:41pm EST  --  Report as abuse
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