S&P Downgrades Mortgage Buyer Fannie Mae to Hold - 2004-01-21
Fannie Mae saw fourth-quarter operating earnings per share of $1.77, vs. $1.66, a penny below S&P's estimate and 2 cents above the Street's estimate.

S&P sees this trend for dominating in 2004 and is raising the operating earnings per share estimate by 6 cents, to $8.01. S&P expects meaningful mortgage portfolio growth to resume by the second quarter. S&P is leaving the 12-month target price at $79.
Read the full story at Business Week

Probability of interest rate hike increased - 2004-01-21
The probability of a hike in interest rates has increased after figures showed a new surge in the amount borrowed by homeowners.

Figures from the Council of Mortgage Lenders showed that homeowners borrowed 25% more money last year than in 2002.

And the British Banking Association published data that showed mortgage lending by the major banks picked up in December after slowing down the previous month.
Read the full story at Ananova