An industry analyst has downgraded both Countrywide Credit Industries and North American Mortgage Co. on the basis of mortgage market conditions.

Steven Eisman of Oppenheimer & Co., New York, said the recent rise in interest rates and the commodity nature of mortgage banking could cause a price war that would affect the companies.

"Because of the recent increase in rates, loan volume and perhaps pricing could weaken within the next several months," Mr. Eisman wrote in recent reports on the two companies.

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