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Fed Mortgage-Backed Securities Update: To Sell or Not?

Fed Rate

Between December 19 and December 24, the Federal Reserve bought $825 million of agency mortgage-backed securities, compared to $1.806 billion purchased the previous week, Reuters [1] reports.

None of the mortgages purchased in the week and guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae have been sold, after it sold $200 million the previous week, according to the Federal Reserve Bank of New York [2].

The Fed 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 since 2011.