Fed MBS Program Update: $34 Billion Left to Spend With Four Weeks to GO
In the week ending March 4, 2010, the Federal Reserve purchased a net total of $10.00 billion agency MBS. This $1 billion decline from the previous reporting period breaks a three week streak of $11 billion net total in purchases. Up until last week, the gradual reduction in the Fed’s weekly purchases has been counterbalanced by a slowdown in new loan production. Going forward, if the amount of funding left to spend is spread out equally over the next 4 weeks, it will not be enough to offset new loan production supply from originators (currently less than $2 billion per day).
Carlos Figueira - Keypoint Mortgage 