FED Start Buying Mortgage Debt

Written By: admin on January 5, 2009 No Comment

Monday, January 5, 2009. The Federal Reserve Bank of New York said Monday it has begun purchasing fixed-rate mortgage-backed securities guaranteed by Fannie Mae , Freddie Mac and Ginnie Mae.

The buys follow up on an announcement made in November that the Fed will buy up to $500 million in mortgage-backed debt from the major government-sponsored agencies to support the housing market.

The Fed will not release details on what it’s bought or how much until Thursday, and will update those details weekly. The U.S. central bank has also bought debt directly issued by the agencies in the last month.