Article: Economists Say Mortgage Rates Will Likely Linger around 7 Percent.

By David Smith, Arkansas Democrat-Gazette, Little Rock Knight Ridder/Tribune Business News

May 16--There's one bright spot in this month's gloomy economic news about falling gross domestic product and rising unemployment: Mortgage rates will likely linger around 7 percent through the end of the summer.

Although 30-year fixed rate mortgages probably bottomed out in March at 6.8 percent, the economy remains too weak for mortgage rates to rise much more, economists and lenders say. In fact, rates could remain at the current level through year-end, they say.

The latest sign of economic weakness came Tuesday when the Federal Reserve cut the ...

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