Economists: 6.25% FRM by Year-End

Mortgage rates are expected to rise slightly by year-end, with 30-year fixed-rate conventional loans averaging about 6.25%, according to some of the nation's top housing and mortgage economists.Currently, conventional FRMs carry a coupon of about 5.8%. During a conference call Aug. 30, five economists whose organizations fund the Homeownership Alliance predicted that the second half will bring continued success for the housing market. It is expected that 2004 will be another record year for new- and existing-home sales. Fannie Mae economist David Berson predicted that new- and existing-home sales will total 1.17 million units and 6.4 million units, respectively. He noted that this would make the current year "the fourth consecutive record year for home sales." Next year is expected to be good, but likely will be the second- or third-best year for home sales, he said.