Buyers      Sellers      Financing      Foreclosure Info      Glossary      About Us      Contact Us         Fed Raises Rate Target and Isn't Done Yet July 1, 2005 The Federal Reserve on Thursday raised interest rates for the ninth consecutive time in a year to levels not seen since before the Sept. 11 terrorist attacks, and experts say more hikes are likely on the way. In a unanimous vote, the Fed decided to boosting its target for short-term rates by a quarter of a point to 3.25 percent. The central bank's post-meeting statement indicated that the job market is improving and inflation appears to be under control, allowing policymakers to continue increasing rates at a "measured pace." Lyle Gramley, senior economic adviser for the Stanford Washington Research Group, who once served as a Fed governor, expects the short-term rate to hit 4 percent by the end of 2005, with additional increases next year. Homeowners with 30-year mortgages are not likely to see their monthly payments change much as a result of this latest rate hike, although those who have adjustable-rate mortgages with rates set to change soon can expect to see an increase in payments. Credit card balances also will be affected. Even with the latest increase, interest rates are just half the level seen in 2000. Source: USA Today (07/01/05); Hagenbaugh, Barbara         In The News >>   Mobile Home Madness: Prices Top $1M >>   Landlords See Lower Apartment Vacancies >>   Fed Raises Rates Again And More Hikes Are Likely >>   Overheated Markets Due for 2006 Slowdown >>   Supreme Court: Eminent Domain OK for Economic Development      Copyright 2005 - The Capital House, Inc.