U.S. Fed buys $39.9 billion of mortgage bonds, sells $17.85 billion

NEW YORK, Aug 13 (Reuters) – The Federal Reserve bought $39.871 billion of agency mortgage-backed securities in the week

from Aug. 6 to Aug. 12, compared with $30.223 billion purchased the previous week, the New York Federal Reserve Bank said on Thursday.

In a move to help the housing market begun in October 2011, the U.S. central bank has been using funds from principal payments

on the agency debt and agency mortgage-backed securities, or MBS, it holds to reinvest in agency MBS.

The New York Fed said on its website the Fed sold $17.85 billion in mortgage securities guaranteed by Fannie Mae ,

Freddie Mac or the Government National Mortgage Association, or Ginnie Mae,

in the latest week. It sold $6 billion the prior week.

((New York Treasury Desk +1-646-223-6300))