So did the underlying mortgages, which proliferated as a result of low interest rates set by the Fed.

The reductions are supposed to return savings that the company is expected to realize as a result of the tax code changes and lower interest rates.

Results for 1987 benefited from a $160 million, or 29 percent, decrease in interest costs, a result of reduced debt levels and lower interest rates.

Banks remain profitable, well-capitalized, and liquid, as a result of growing national resources and high interest rates.

"As a result of low interest rates, prices will remain high for stable properties with assured incomes," he said.

"The outlook, as a result of subdued inflation and still very low long-term interest rates, is the best we have seen in decades," he said.

Banking-company stocks were higher as the result of favorable earnings reports and lower interest rates.

Some automakers have said publicly that they are bracing for a downturn as a result of high interest rates and a strong local currency.

Economists said the lackluster performance was a result of rising interest rates and previous overbuilding in many regions.

Part of the drop is probably a result of rising interest rates, which generally hurt financial institutions.