BANKING & FINANCE - March 27, 1996

Fannie Mae Expects Rise in Mortgage Volume: The Federal National Mortgage Assn. said it expects Americans to take out about $750 billion in mortgages this year, the first increase in three years, as interest rates continue to drop. The figure compares with an estimated $650 billion last year. The proportion of new loans used to refinance existing mortgages will rise substantially from last year, Fannie Mae Chief Economist Dave Berson said in a statement. He said he expects long-term mortgage rates to drop over the next several months after a slight rise over the next month as economic indicators rebound from January’s weather-related weakness.