Wednesday, March 23, 2005

Feds raise rates

The Federal Reserve raised the fed funds rate (the rate charged banks on over-night loans) a quarter percentage point to 2.75 percent on Tuesday. This is the seventh consecutive rise. We have also seen a rise in mortgage interest rates recently, perhaps in anticipation of this move.

And the National Association of Realtors® make predictions

The National Association of Realtors® is predicting an upward trend in mortgage interest rates, and a strong housing market.

According to David Lereah, chief economist for the National Association of Realtors®, "After setting four consecutive record years, the housing market is due for a breather," he says. "As mortgage interest rates creep up and home sales slow a bit, we should see a better balance between home buyers and sellers—that will take some of the pressure off of home prices."

To read more, go here.

No comments: