Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Tue, Mar 3 1992 Date: Tue, 3 Mar 92 06:00:08 EST Message-ID: 03-03 0000 DECISIONLINE: Real Estate USA TODAY Update March 3, 1992 Source: USA TODAY:Gannett National Information Network CONSTRUCTION, MANUFACTURING CLIMB: The ailing U.S. economy may be showing signs of recovery, according to two reports Monday. Construction spending rebounded in January after three monthly declines, the Commerce Department said. And manufacturing activity surged in February for the first time since November, a key business survey said. "This is ... the beginning of something good," says Robert Bretz of Pitney Bowes. RESIDENTIAL SPENDING JUMPS: Construction spending jumped 1.3% in January from December, the Commerce Department said Monday. Spending had dropped 1.6% in December. Residential construction increased 2.6% after being pulled down 1% in December by a decline in multifamily building. Nonresidential spending dropped 0.7% after declining 0.3% the previous month. The value of new office buildings dropped 8.6%. FANNIE MAE HAS NEW LOAN PROGRAM: Fannie Mae plans to offer forward commitment takeout loans for low-income multifamily housing by midyear, according to Thomas White of Fannie Mae. The program will allow builders to lock in an interest rate upfront, making it easier for builders to get construction financing, says Fannie Mae's Larry Dale. Fannie expects to do about $50 million in business in 1992. SANTA CLARA SALES INCREASE: Home sales in Santa Clara County, Calif., increased in February 35% over January sales and 28% over sales for February 1991, according to Colleen Badagliacco of the San Jose Real Estate Board. The Santa Clara County Multiple Listing Service reported 1,673 residential sales for February 1992, up from 1,242 in January and up from 1,304 in February 1991. RE:MAX OF N.Y. WINS AWARDS: RE:MAX of new york inc. announced Monday that its parent firm, RE:MAX International, has given it three awards for growth and marketing success during last year. The awards include: Regional director of the year; marketing director of the year; and marketing consultant of the year. RE:MAX of new york inc. grew in sales volume 80% in 1991. Transaction growth increased by 35%. BANK ESCAPES REAL ESTATE: State Street Boston Corp. has escaped the real-estate problems that have burned other New England banks, largely by sidestepping the issue. After being hurt by such loans in the 1970s, the bank moved away from lending, turning into a high-tech information services firm. It's worked: For 10 years, State Street's return on equity has exceeded 18%; most banks would be happy with 15%. ADMINISTRATION `OUT OF TOUCH': The Bush administration's proposed budget for the Department of Housing and Urban Development "demonstrates that it is out of touch with the housing needs of low-income Americans," according to Jack Quinn, president of the National Association of Housing and Redevelopment Officials. The proposed $24.3 billion budget is a 6% reduction from what was appropriated for fiscal year 1992. KEMP SAYS HE, BUSH `COMMITTED': Department of Housing and Urban Development Secretary Jack Kemp has said that he and President Bush are "committed to expanding empowerment and choice for low-income families." But the budget does not recommend funding to help public-housing families through provisions in the 1990 Affordable Housing Act, according to the National Association of Housing and Redevelopment Officials. LUMP-SUM REIMBURSEMENT USED: Seven major U.S. corporations now reimburse employees for their homefinding and temporary living expenses with a lump-sum payment, according to Runzheimer International. Among them: IBM, AT&T and Ciba Geigy. Industry experts estimate it costs more than $25 to process each transferee expense report. FIXED-RATE MORTGAGES INCREASE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.83% Monday, up from Thursday and up from 8.82% the week before. They were at 9.40% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.93%, up from Thursday and up from 5.92% the week before. A year ago they were at 7.53%. ARM INDEXES INCREASE: The one-year Treasury ARM index rates were listed at 4.41% Monday, up from Thursday and up from 4.37% the week before. A year ago they were at 6.40%. For the 11th District ARM index, rates were at 6.002%, up from Thursday and up from 6.245% the week before. A year ago they were at 7.858%. T-BONDS INCREASE: Treasury security rates for the 30-year bonds showed an increase Monday, listing at 7.90%. That's up 0.06 from rates of 7.84% Thursday but down 0.07 from 7.97% the week before. A year ago T-bonds were at 8.24%. Real Estate: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM