NY Fed Slows Weekly MBS Purchases
The New York Federal Reserve Bank detailed purchases of $29.1bn of mortgage-backed securities (MBS) issued by Freddie Mac (FRE), Fannie Mae (FNM) and Ginnie Mae. The Fed's weekly net purchases brought total net purchases to $904.9bn, according to a securitization research bulletin this week by Barclays Capital (BarCap). Of those net purchases, Fannie represents the largest share (59%), while Freddie represents 33% and Ginnie represents 8%. Net of $9.1bn sales the same week ending September 30, the Fed's $20bn of purchases showed a steady decline from $23bn in the week ending September 23 and $25.5bn in the week ending September 16. The weekly slow-down confirms the Federal Open Market Committee’s (FOMC) report that the Fed is on track to buy $1.25trn in agency MBS, and intends to wind down the purchasing program before its anticipated conclusion at the end of Q110. Write to Diana Golobay.