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 $8 billion in mortgage securities guaranteed by Fannie Mae (OB:FNMA), Freddie Mac (OB:FMCC) 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)
