Yesterday, the Federal Reserve reported on their weekly purchases of agency mortgage-backed securities (MBS). To date, the Federal Reserve has spent $741.60 billion, 59.33% of the $1.25 trillion allocated, which is which runs out at years end. This week, the Fed’s net purchases came to $20.40 billion agency MBS.
The goal of the Federal Reserve’s agency MBS program is to support the mortgage and housing markets and to improve the conditions of financial markets. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers.
