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.

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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