Wednesday, February 02, 2005

Feds raise interest rates

As widely expected, the Feds raised "its target for the federal funds rate by 25 basis points to 2-1/2 percent...The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
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This is the sixth straight increase since June. We will watch for any effect this has on mortgage rates in the coming weeks.

To read the press release, go here.

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