BANKING & FINANCE - June 25, 1993

Mortgage Rates Hit 21-Year Low: The interest rates on 30-year, fixed-rate mortgages fell to 7.34% this week, pulled down by the fading of inflation fears on financial markets. The latest mortgage rate average, down from 7.38% the week before, was the lowest since the week ended May 5, 1972, the Federal Home Loan Mortgage Corp. said. Rates had previously hit a low of 7.38% in late April but spiked up to 7.52% by late May after the release of government reports showing more inflation than expected. However, last week the Labor Department said its consumer price index rose just 0.1% in May. That caused many economists to dismiss the earlier price increases as transitory.