Fed buys $3 billion of Fannie, Freddie, FHLB debt

NEW YORK, Dec 12 (Reuters) - The Federal Reserve bought $3 billion of Fannie Mae_(FNM.P), Freddie Mac (FRE.P) and Federal Home Loan Banks debt in permanent coupon purchases on Friday in its latest effort to lower mortgage rates.

Dealers submitted $5.89 billion for consideration in the Fed purchase. The Fed made its heaviest purchases in Fannie Mae's 5 percent notes maturing in May 2017 and Freddie Mac 5.25 percent notes maturing in April 2016, buying over $280 million of each.

Of the 44 classes of notes available, the Fed did not make purchases in 12 classes.

It was the second agency debt purchase by the Fed in its effort to lower rates. The Fed started the program on Friday, Dec. 5 when it bought $5 billion of agency debt.

For more details on the operation please click on: here (Reporting by Chris Reese; Editing by Chizu Nomiyama )