NEW YORK, Dec 19 (Reuters) - The Federal Reserve bought $3 billion of Fannie Mae (FNM.P: Quote, Profile, Research), Freddie Mac (FRE.P: Quote, Profile, Research) and Federal Home Loan Banks debt in permanent coupon purchases on Friday in a continuing effort to lower mortgage rates.

Dealers submitted $5.81 billion for consideration in the Fed purchase. The Fed made its heaviest purchases in Freddie Mac's 6.875 percent notes maturing in September 2010 and Freddie Mac's 4.125 percent notes maturing in July 2010, buying over $330 million of each.

Of the 35 classes of notes available, the Fed did not make purchases in eight classes.

The Fed began the program to lower rates on Friday, Dec. 5 when it bought $5 billion of agency debt.

For more details on the operation please click on: here (Reporting by Chris Reese; Editing by James Dalgleish)