30-Year Fixed Rates Fall Back Below 8% for 1st Time Since Spring

Interest rates being offered on 30-year fixed-rate loans fell below 8% in most parts of the country last week, for the first time since April.

With yields on 30-year Treasury bonds down to about 6.67% toward the end of the week, and favorable economic statistics flowing from Washington, a sub-8% loan rate appeared likely to continue.

At the Mortgage Bankers Association's annual conference last week, David Lereah, the group's chief economist, said he expected mortgage originations to finish the year at just under $800 billion. But he said he believes the figure will fall by about $100 billion next year.

The lowest quoted rate last week was, as usual, in the Washington area, where offering rates averaged 7.75%, according to HSH Associates, Butler, N.J. However, the points charged there were the highest in the country, at 1.88.

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