Fed slows $1.45T program to aid housing market

WASHINGTON (AP) — With the economy on the mend, the Federal Reserve says it is slowing the pace of a program to lower mortgage rates and prop up the housing market.

The Fed says it will stretch out its goal of buying $1.45 trillion in mortgage-backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae until the end of the first quarter of 2010. Originally, the Fed intended to complete buying those securities by the end of this year.

In a more upbeat assessment, the Fed says: "Economic activity has picked up following its severe downturn."