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U.S. Fed buys $21.7 billion of mortgage bonds, sells $3.6 billion - Metro US

U.S. Fed buys $21.7 billion of mortgage bonds, sells $3.6 billion

FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington

NEW YORK, July 9 (Reuters) – The Federal Reserve bought $21.685 billion of agency mortgage-backed securities in the week

from Jul. 2 to Jul. 8, compared with $22.705 billion purchased the previous week, the New York Federal Reserve Bank said on Thursday.

In a move to help the housing market begun in 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 $3.6 billion in mortgage securities guaranteed by Fannie Mae <FNMA.OB>,

Freddie Mac <FMCC.OB> or the Government National Mortgage Association, or Ginnie Mae,

in the latest week. It sold none the prior week.

(New York Treasury Desk +1-646-223-6300)

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