NEW YORK May 16 The Federal Reserve bought
$17.3 billion of agency mortgage-backed securities from May 9
through May 15, a tad less than the $17.8 billion it purchased
last week, the New York Federal Reserve Bank said on Thursday.
In a move to help the housing market, since October 2011 the
U.S. central bank has been using funds from principal payments
on the agency debt and agency mortgage-backed securities, or
MBS, it holds to reinvest in agency MBS.
The New York Fed said on its website the Fed sold $2.2
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
$2.7 billion the previous week.
Last Sept. 14, the Fed increased its purchases of MBS to $40
billion a month in its third round of large-scale bond buying in
an attempt to support the housing recovery and boost economic