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Banks make it harder on the credit worthy

By Times Wires
Published February 5, 2008

WASHINGTON

Many U.S. banks have made it harder for creditworthy borrowers to get a mortgage, according to a Federal Reserve survey released Monday. "About 55 percent of domestic respondents indicated that they had tightened their lending standards on prime mortgages," the Fed survey said. That was up from about 40 percent in a previous survey released in November. Problems first cropped up in the market for risky "subprime" mortgages made to people with tarnished credit or low incomes and have been spreading to more creditworthy borrowers. Foreclosures have hit record highs.

Factory orders take sharp upturn

U.S. factories saw demand for their products rise in December by the largest amount in five months. The Commerce Department reported Monday that orders placed with U.S. factories rose by 2.3 percent in December. That was an improvement from the 1.7 percent gain posted in November and marked the biggest increase since July. For all of last year, total orders - durable and nondurable goods - placed with U.S. factories went up by just 1.4 percent. It was the worst performance since 2002. The news prompted oil futures to rise Monday, as investors took hope that the economy will dodge a recession that would curtail demand for energy.

LOS ANGELES

Yahoo is endingWeb music service

Yahoo Inc. will cease operating its online music subscription service and switch its customers to RealNetworks Inc.'s Rhapsody music service as part of a new deal between the companies that calls for Yahoo to promote Rhapsody on its site. Terms of the deal announced Monday were not disclosed. The move is part of Yahoo's overhaul of its online music offerings.

WASHINGTON

Treasury bill rates the lowest in years

Interest rates on short-term Treasury bills fell Monday to the lowest levels since late 2004. The Treasury Department auctioned $23-billion in three-month bills at a discount rate of 2.230 percent, down from 2.335 percent last week. Another $21-billion in six-month bills was auctioned at a discount rate of 2.160 percent, down from 2.310 percent last week. The three-month rate was the lowest since on Dec. 27, 2004.

Times wires

[Last modified February 5, 2008, 01:17:18]