Greenspan hints at higher mortgage rates

In his semi-annual testimony before Congress, Greenspan said the U.S. economy "seems to have entered 2005 expanding at a reasonably good pace, with inflation and inflation expectations well anchored."

He indicated that short-term interest rates controlled by the Fed likely would continue to go up this year. He also raised the possibility that long-term interest rates, such as those on mortgages, could be headed higher.