NEW YORK (Reuters) - U.S. Federal Reserve's balance sheet expanded in the latest week, Fed data released on Thursday showed.

The Fed's balance sheet - a broad gauge of its lending to the financial system - stood at $2.848 trillion on July 4, down from $2.846 trillion the previous week.

The Fed's holdings of Treasuries totaled $1.666 trillion as of July 4, versus $1.667 trillion the previous week.

The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $16 million a day during the week versus $27 million a day previously.

The Fed's ownership of mortgage bonds guaranteed by Fannie Mae , Freddie Mac and the Government National Mortgage Association (Ginnie Mae) was $855.03 billion versus $854.98 billion the previous week.

The Fed's holdings of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Bank system totaled $91.48 billion, unchanged from the prior week.

(Reporting By Steven C. Johnson; Editing by Padraic Cassidy)