Over Half of Fed's Allocated Funds Now Used

The Federal Reserve today reported on their weekly purchases of agency mortgage-backed securities (MBS). In the four trading days between July 2 and July 8, the Federal Reserve purchased a gross of $23.250 billion Agency MBS. During this period the Federal Reserve sold $6.2billion agency MBS, which brought their weekly net purchases to a total of $17.050 billion.

Since the inception of the program the Federal Reserve has spent $638.61 billion, 51% of the $1.25 trillion that was allocated.

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.