Fed hikes federal funds rate

In a widely expected move, the U.S. Federal Reserve today decided to raise its target for the federal funds rate to 2.75 percent, saying that pressures on inflation have picked up in recent months.

Update: Lawrence Yun, senior economist for the National Association of Realtors.
Yun says that the 30-year fixed mortgage – now 6 percent (average) -- will be 6.7 percent by year's end. Yun is predicting that residential sales will decline 3 percent for 2005 as a whole. This comes off of four record years. There were also be a slowing in price growth. Price appreciation in 2004 was 9 percent. It will be between 5 and 5.5 percent in 2005, according to Yun.

May want to purchase that home now!