Tuesday, February 1, 2005

Rates Drop Approvals Jump

Mortgage rates drop today while mortgage application approval rises. While new homes sales for December came in far below expectations the year ends with record sales for new homes.

Federal Reserve policy-makers are likely to keep bumping up short-term interest rates this year, a defense against an inflation flare-up now that the economic expansion is on firm footing. Experts predict a quarter-point, short-term interest rate hike tomorrow by the Federal Reserve.