Fed Nears $1trn Mark in MBS Purchases
The Federal Reserve’s gross purchases of mortgage-backed securities (MBS) from government-sponsored enterprises (GSEs) reached $18bn for the week ending Oct. 29, according to a report from Barclay's Capital. The Fed uses its agency MBS-purchases program to provide credit to the securities market. The weekly purchases include $11.4bn from Fannie Mae (FNM), $5.2bn from Freddie Mac (FRE) and $1.3bn from Ginnie Mae. The Fed’s total net purchases rose to $977.1bn - on track for the $1.25trn in agency MBS the Fed plans to purchase, according to the Federal Open Market Committee’s report. The Fed intends to slow the purchasing program before its anticipated conclusion at the end of Q110. Of the $977.1bn, the Fed purchased $325.6bn from Freddie, $569.3bn from Fannie and $82.1bn from Ginnie. Write to Jon Prior.