NEW YORK Aug 14 The Federal Reserve bought
$7.870 billion of agency mortgage-backed securities in the week
from Aug. 7 to Aug. 13, more than the $7.648 billion purchased
the previous week, the New York Federal Reserve Bank said on
In a program that began in October 2011 to help the housing
market recover, 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 $200
million in mortgage securities guaranteed by mortgage finance
sources Fannie Mae, Freddie Mac or the
Government National Mortgage Association, or Ginnie Mae, in the
latest week. It sold none the prior week.
At its July policy meeting, the Fed decided to reduce
further its new purchases of MBS in August to $10 billion a
month from $15 billion, as it aims to wrap up its third round of
large-scale bond buying due to continued improvement in the U.S.
economy. The Fed has also continued to reinvest proceeds from
interest payments and maturing issues.
(Reporting by Richard Leong; Editing by James Dalgleish)