Newspaper article THE JOURNAL RECORD

Fixedte Mortgages Average 8.06 Percent

Newspaper article THE JOURNAL RECORD

Fixedte Mortgages Average 8.06 Percent

Article excerpt

Fixedte Mortgages Average 8.06 Percent

WASHINGTON _ Thirtyar, fixedte mortgages averaged 8.06 percent this week, basically unchanged from the week before, according to a national survey released Friday by the Federal Home Loan Mortgage Corp. It was the first time in six weeks that rates had not declined. Last week they dropped to 8.05 percent, the lowest level since July 1973. On onear adjustable rate mortgages, lenders were asking an average initial rate of 5.30 percent, down from 5.37 percent last week. The rates do not include add-on fees known as points. Consumer Credit Drops

WASHINGTON _ Consumers reduced their outstanding debt for the fifth consecutive month in June, improving their balance sheets by $1.02 billion, the Federal Reserve reported Friday. The decline translated into a 1.7 percent reduction at a seasonally adjusted annual rate and came entirely from a drop in auto loans, which fell by $2.80 billion in June. The June decrease followed declines in debt of $893 million in May and a huge $3.58 billion drop in April. The April decrease, which translated into an annual rate of decline of 5.9 percent, was the biggest drop in a decade.

Both consumers and businesses have been busy reducing huge debt burdens built up during the go-go years of the 1980s. Consumer debt has declined 11 times in the past 14 months. While this process is laying the groundwork for healthier economic expansion in the future, it has had a depressing effect on the economy over the past year because consumers busy paying off old debts have not been in the mood to increase spending. Many economists believe that the debt restructuring may last for at least another year. Parent of Northwest Airlines Reports Wider Loss

EAGAN, Minn. _ The parent company of Northwest Airlines reported Friday that its second quarter losses widened to $146 million due to the airre wars and economic weakness. …

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