Thursday, January 6, 2005

Where Are Mortgage Rates Headed

Overnight and into the early morning mortgage rates should hold at their lower levels.

a Fed official said that while the Committee depends on economic data for guidance, he believes that accommodation can be removed slowly, which is "Fed speak" for gradual rate increases.

The Federal Reserve's accommodative monetary policy is generating "excessive risk-taking" in the financial markets and possibly fueling speculative demand for single homes and condominiums, according to some members of the Fed's interest rate-setting group.

The Market Composite Index, an overall measure of mortgage applications, fell from 677.4 to 605.7 on a seasonally adjusted basis during the holiday week ended Dec. 31, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.