Business Digest

February 19, 2010 at 12:00a.m.

NATION

Microsoft, Yahoo cleared for search partnership

WASHINGTON — Microsoft Corp. and Yahoo Inc. have received clearance from regulators in Washington and Europe to proceed with a search partnership intended to challenge Google Inc.

The companies announced Thursday that the partnership has been approved without restrictions by the Justice Department and the European Commission. Under the 10-year agreement, Microsoft’s Bing search engine will process search requests and steer search-related ads on Yahoo. Yahoo is due to get 88 percent of the revenue generated from the ads placed alongside the search results on its sites.

Mortgage rates edge lower

WASHINGTON — Rates for 30-year home loans have edged lower for the second straight week, but remain above last year’s record lows.

The mortgage finance company Freddie Mac said Thursday that the average rate on a 30-year fixed rate mortgage fell to 4.93 percent this week from 4.97 percent a week earlier.

Rates dropped to a record low of 4.71 percent in early December, pushed down by an aggressive government campaign to reduce consumers’ borrowing costs.

Associated Press