Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Mon, Jul 27 1992 Date: Mon, 27 Jul 92 04:22:00 EDT Message-ID: 07-27 0000 DECISIONLINE: Real Estate USA TODAY Update July 27, 1992 Source: USA TODAY:Gannett National Information Network HOME SALES TO PICK UP SOON: Judging by the number of applications for mortgages so far in July, home sales have picked up sharply - or will as buyers close their deals. The Mortgage Bankers Association said last week that applications jumped 14% the week ended July 17 from the week before, when they jumped 14%. HOME SALES COULD BOOST ECONOMY: A sharp rise in mortgage applications this month is great news if it signals a long-lasting upturn in home sales. A pickup in home sales could rescue the economy: Before sellers put a house on the market, they spend money to spruce it up. Walls are painted, carpets cleaned and windows fixed. While a house is for sale, money is spent on classified ads and home inspections. (For more, see special Sales package below.) GROWTH STAGNANT IN LOS ANGELES: Once-thriving businesses in south central Los Angeles have vanished - nearly 10,000, according to estimates. Small-business owners have begun rebuilding after rioting this spring, but disaster relief statistics indicate many won't return. Almost 4,000 of 16,900 Small Business Administration loan applications distributed to disaster activity centers have been returned. PRUDENTIAL HAS NEW TRUST: Brokers announced two new real estate mortgage investment conduits Friday totaling $1.3 billion. Prudential Securities announced a $1 billion Fannie Mae Series and Salomon Brothers rolled out a $325 million Fannie Mae Stripped Mortgage Backed Security Trust. MINORITIES FLOCKING TO SUBURBS: The 1980s saw an increase in the percentage of minorities living in the nation's suburban areas, according to the U.S. Census Bureau. The minority share of the nation's suburban population grew to 17.6% in 1990 from 13.1% in 1980, Census Bureau indicates. TIPS OFFERED IN SPANISH: Home-buying tips written in Spanish are offered in a free brochure by the Federal National Mortgage Association. For brochures (also available in English), write: Fannie Mae, Drawer SP, 3900 Wisconsin Ave. N.W., Washington, D.C. 20016. FIXED-RATE MORTGAGES DOWN: Thirty-year fixed-rate mortgages averaged 8.08% last week, down slightly from 8.09% the week before, according to a national survey by the Federal Home Loan Mortgage Corp. It was the lowest rate since July 1973 and the fourth straight decline. In mid-January, rates fell to 8.23%, rose to 9.03% by late March and have fallen in 14 of the 17 weeks since. ARM INDEXES DOWN: Lenders were asking an average initial rate of 5.45% last week on one-year adjustable rate mortgages, down from 5.50% the week before and the lowest since the Federal Home Loan Mortgage Corp. began tracking ARMs in 1984. The rates do not include add-on fees known as points. T-BONDS RISE: Treasury security rates for 30-year bonds rose Friday, listing at 7.57%. That's up 0.04 from rates of 7.53% Thursday and down 0.09 from 7.66% the week before. T-bonds were at 8.38% a year ago. The discount rate on three-month T-bills was unchanged at 3.16%. SPECIAL PACKAGE ON SALES: MANY BENEFIT FROM SALE: Many people can benefit from home sales. When a house is sold, fees are paid to real-estate agents, mortgage companies, lawyers, appraisers, surveyors and title insurance companies. During a move, trucks are rented or movers hired. After a move, home buyers may want new furniture, appliances and carpets. They might even want to paint over the room the seller painted a few months before. SELLING MEANS BUYING: In most cases, home sellers are also home buyers. They're moving to a bigger home because their family is growing or to a smaller home because they've retired. That means more spending. If home sales stay strong for a while, add spending by real-estate agents and lawyers, who could buy a new car to chauffeur clients. HOMES SALES BIG CHUNK OF GDP: Few business transactions do more for the economy than the sale of a home. By the time all the ripple effects are added, sales of new and existing homes account for about 12% of the USA's $5.8 trillion annual gross domestic product, economists say. That makes home sales nearly as large a chunk of the economy as exports of manufactured goods. (End of package.) Real Estate Editor: Michele Coleman. (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