http://www.mortgagenewsdaily.com/01212010_fed_agency_mbs_purchases.asp
Fed MBS Purchase Program Update: $101 Billion Left to Spend
by Adam Quinones on
The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS).
In the holiday shortened work week between January 14 and January 20, 2010, the Federal Reserve purchased a total of $16.359 billion agency MBS. In those four days the Federal Reserve sold $4.359 billion (supported the roll market) for a net total of $12 billion purchases.The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. 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.Since the inception of the program in January 2009, the Fed has spent $1.148 trillion in the agency MBS market, or 91.91 percent of the allocated $1.25 trillion, which is scheduled to run out in March 2010. This leaves $101 billion left to purchase MBS coupons in the TBA market.
Fed MBS Purchase Program Update: $101 Billion Left to Spend
by Adam Quinones on
The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS).
In the holiday shortened work week between January 14 and January 20, 2010, the Federal Reserve purchased a total of $16.359 billion agency MBS. In those four days the Federal Reserve sold $4.359 billion (supported the roll market) for a net total of $12 billion purchases.The goal of the Federal Reserve's agency MBS program is to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. 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.Since the inception of the program in January 2009, the Fed has spent $1.148 trillion in the agency MBS market, or 91.91 percent of the allocated $1.25 trillion, which is scheduled to run out in March 2010. This leaves $101 billion left to purchase MBS coupons in the TBA market.
Rates Are expected to return the levels they were prior to Fed’s purchase program of $1.25Trillion in MortgageBackedSecurities around 6%
No comments:
Post a Comment