Interest rates on 30-year home loans are leveling off and should fall to about 8.5 percent by the end of 1995, the nation's largest investor in residential mortgages predicts.
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"I think we're pretty close to the peak in long-term rates," said David Berson, chief economist for Fannie Mae, a company chartered by Congress to buy home mortgages and convert them into securities.Berson said he expects the Federal Reserve Board to raise short-term interest rates another one-half to three-quarters of a percent over the next two months.