(July 10) -- Low interest rates will likely drive refinancing activity to a record high this year. However, Fannie Mae and Freddie Mac expect a slowdown ahead. They predict that financing volume will plunge from an expected $2.60 trillion in 2003 to roughly $850 billion in 2004. The pair believe that this will result from an increase in the 30-year mortgage interest rate, which they predict will climb from 5.5 percent in 2003 to 5.6 percent in 2004.
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