Title Index Hits 6-Month High

The AFS Title Search Index rose 6.3% to a holiday-adjusted 231.5 for the week ended Sept. 11, its highest level since March 20, according to Bridge/Telerate Advance Factor Service.The index averaged 216.0 over the previous four weeks, up 5.2 points from the prior week's four-week moving average. A year ago, the index stood at 158.5, 68.4% of the current level. "With mortgage rates establishing new lows for 1998, look for the index to continue at this current level for next week and perhaps beyond," said AFS manager Paul Descloux. "With the fundamentals and technicals in the bond market supporting a continuation of recent declining rate trends, look for 1998's prepayment plateau to continue through the end of the year, with the 'holiday effect' the only apparent speed bump on the horizon." The holiday effect is the slowdown in mortgage activity between Thanksgiving and New Year's. Mr. Descloux's e-mail address is paul.descloux@cor.dowjones.com.