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About Increased Home Mortgage Interest Rates

It's going to get more costly to take out a loan. The Federal Reserve has raised the benchmark federal funds interest rate by a-quarter point to 4.75 percent. The Fed is also indicating it may raise rates again at its next meeting in May. This is the first Fed move on interest rates under the Leadership of chairman Ben Bernanke, and it's the 15th straight increase in two years. Commercial banks are expected to respond by pushing the prime rate up to 7.75 percent. The impact of the rate increases is most obvious in the housing market. Sales of previously-owned homes have fallen in five of the past six months and sales of new homes dropped in February by the largest amount in nearly nine years.

Hipotecas Prestamos March 28, 2006 03:40 PM

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