Lower home-mortgage rate foreseen
The home-mortgage rate is expected to drop to 12.6 percent during the fourth quarter of 1983 from its current 13.8 percent level, according to a consensus of 34 leading economists.Skip to next paragraph
Subscribe Today to the Monitor
Robert J. Eggert of Sedona, Ariz., reporting in his Blue Chip Financial Forecasts newsletter, says his group also forecasts a dip in the home-mortgage rate to 12.9 percent during the second quarter next year before a further plunge to 12.6 percent. The home mortgage rate - the Federal Home Loan Bank Board effective rate on conventional mortgages - peaked at 15.7 percent in the second quarter of this year.
In addition, the economist group expects the prime rate - what banks claim to charge their most credit-worthy customers - to bottom out at 10.9 percent during the second quarter of next year. It is now 11.5 percent.