Change coming for overnight interest rates

Fed reports economic 'expansion' in August

Rates fell this week, not a lot, but back to the post-spring lows: low-fee mortgages shading under 5.75 percent, taken there by the 10-year T-note trading persistently in the 4-teens.

Last week’s news of modest job creation in August has been overtaken by the reality of negligible inflation (wholesale “producer” prices fell .1 percent last month), and Federal Reserve Chairman Alan Greenspan’s formal acknowledgement of that fact in testimony to Congress on Wednesday: “…Inflation and inflation expectations have eased in recent months.”