Mortgages: Loan Rates May Rise: Loan Officials Say Rates Could Be Forced Higher
The Carter administrationÛªs latest attack on inflation will not bring home mortgage interest rates down from their record levels and may even force them higher, housing and lending officials predicted yesterday.</br></br>Lending officials warned that the only thing that could bring mortgage costs down quickly, is a severe recession. They said they believed that could happen.</br></br>But if the nation does not fall into a recession, home buyers can expect to pay 14, 15, 16 percent or more for mortgages for months to come.</br></br>regard to mortgage rates or mortgage availability,Û said Kenneth Thyger-son, chief economist for the U.S. League of Savings Associations. .</br></br>Thygerson predicted mortgage costs will remain at or near record levels because the Carter plan does nothing to lower the cost of money for mortgages or to encourage people to save.