Rising Again

October 09, 1994

Mortgage rates continued to climb last week, and experts say the numbers will only go higher next week -- almost certainly above 9 percent for the first time in almost 3 years.

Rates in Baltimore averaged 8.89 percent last week, up from 8.86 percent. But the rate on the 30-year Treasury bond -- a leading indicator of mortgages -- rose sharply last week, and mortgage rates are likely to follow suit.

The recent rise in rates -- from a low of 6.76 about a year ago -- has choked off demand for housing. The number of new contracts signed fell 26 percent last month, which follows declines of 18 percent in both July and August.

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