BANKING & FINANCE - July 2, 1994

Mortgage Rates Move Higher: Thirty-year, fixed-rate mortgages averaged 8.57% this week, up from 8.46% last week, according to a national survey released by the Federal Home Loan Mortgage Corp. The average was the highest since May 12, when it was 8.77%. The average hit a 25-year low of 6.74% in October. On one-year, adjustable-rate mortgages, lenders were asking an average initial rate of 5.48%, up from 5.41% last week. Fifteen-year mortgages, a popular option for people refinancing mortgages, averaged 8.07% this week, up from 8% a week earlier. The rates do not include add-on fees known as points.