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Mortgage News for Wednesday - March 16, 2005

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• Economists: Housing Slump Could Dampen US Economy
• Inflation, interest-rate fear mute gains
• Analysts expect housing market to slow; some fear bursting `bubble'
Mortgage News
Inflation, interest-rate fear mute gains - 2005-03-16
Wall Street squeezed out a moderate gain yesterday in a volatile session that saw investors alternating between worries about interest rates and delight in a new wave of merger deals.

However, the gains were checked in by inflation worries that sent stocks falling last week, as Federal Reserve board member Janet Yellen warned that rising interest rates could hurt borrowers. A rise in oil prices also unnerved investors, with a barrel of light crude settling at $54.95, up 52 cents, on the New York Mercantile Exchange.
Read the full story at Seattle Times
 
Analysts expect housing market to slow; some fear bursting `bubble' - 2005-03-16
The U.S. housing market finally appears headed for a cooling down of activity after four years of spectacular growth that's raised widespread fears of a real estate "bubble."

Because rising short-term interest rates and concerns about inflation are driving up the price of home mortgages nationwide, home sales are expected to slow, and prices in some markets could even fall.
Read the full story at Knight-Ridder Washington Bureau
 






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