Federal Reserve Board (Fed) Announced Economic Activity

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Federal Reserve Board (Fed)

Federal Reserve Board (Fed) announced that economic activity is picking up, noting that there increase activity in the housing sector. Fed reaffirmed its ongoing program to purchase a total of $1.25 trillion of Fannie Mae and Freddie Mac mortgage-backed securities and up to $200 billion of their debt. However, in recognition of the improving economic conditions and to promote return of private investment to these markets. Fed has decided to spread its purchases over an additional three months, through the end of March 2010. Previously, the Fed had planned to complete these purchases by the end of 2009.

On October 15, 2009, National Association of Realtors (NAR) submitted a letter to the Fed. Treasury and Federal Housing Finance Agency (FHFA) noting that the manner in which the Fed unwinds the Mortgage-Backed Security (MBS) program is critical to the housing and mortgage industries as well as the economy as a whole. In the letter National Association of Realtors (NAR) provided several recommendations for how the Fed could accomplish this as well as requesting a meeting.