WASHINGTON -- Fixed mortgage rates will begin a steady decline next spring and cushion the effect of a slowing economy on home sales, according to the chief economist for the Federal National Mortgage Association.

In a yearend forecast for 1995, David Berson said he believes the national average rate on 30-year mortgages will fall to 8.5% by the end of next year from a high of 9.3% this year.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.