Despite signs that "activity in the housing sector has increased," the Federal Reserve Board's policymaking committee said Wednesday that it would continue to purchase debt and MBS from Fannie Mae and Freddie Mac into next year.

The Fed has committed to buying $1.25 trillion of MBS and $200 billion of debt from the GSEs, though the central bank has been saying that those purchases would wrap up by yearend. The purchases will now continue through the first quarter of 2010.

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