Fed Continues to Purchase Mortgage-Backed Securities

NEW YORK, Dec 26 (Reuters) - The Federal Reserve bought $825 million of agency mortgage-backed securities in the week from Dec. 19 to Dec. 24, compared with $1.806 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 no mortgage securities guaranteed by Fannie Mae FNMA.OB, Freddie Mac FMCC.OB or the Government National Mortgage Association, or Ginnie Mae, in the latest week. It sold $200 million the prior week.