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, Feb 18 1992 Date: Tue, 18 Feb 92 06:36:31 EST Message-ID: DECISIONLINE: Real Estate USA TODAY Update Feb. 18, 1992 Source: USA TODAY:Gannett National Information Network RATES KEEP BUYERS AWAY: Higher mortgage rates are stemming demand for home loans and keeping more first-time buyers at home, many lenders and real estate agents say. "Since the first week of February there's been a slowdown in appointments, a slowdown in the number of people looking at houses and a slowdown in the number of people signing contracts," says Barbara Reeves of Re:Max Associates of Dallas. (For more, see special Slowdown package below.) PROPOSAL HELPS D.C. WORKERS: The District of Columbia's City Council housing committee is studying a proposal that would make it easier for more city workers to afford to live in the district. The panel gave approval last week to a bill that would provide a down payment savings program in which the city would grant $500 for every $2,500 contributed by an employee. The city also would offer below-rate first mortgages. CRA STARTS GETTING ENFORCED: Banks looking to enter the merger sweepstakes can't ignore legal requirements to lend in poor neighborhoods anymore. Last fall, the Federal Reserve for the first time blocked a bank merger only because one of the banks involved ran afoul of the Community Reinvestment Act requiring banks to lend in poor and minority neighborhoods. ENFORCEMENT IS NEEDED: Under President Reagan, the Community Reinvestment Act "sat on the shelf," says consultant Kenneth Thomas. Evidence suggests recent enforcement is needed. Last fall, the Fed reported that blacks are two to four times more likely than whites to be rejected for mortgage loans, suggesting bank discrimination. "CRA is for real," Thomas says. "It's not going to go away." FRANCHISES ARE A FAVORITE: Many retail leasing executives favor franchises, thanks to the high success rates and brand-name recognition they bring shopping centers, says to the International Council of Shopping Centers. "Certain franchises, like (fast-food restaurants) ... are targeting malls more, and the malls are accommodating them," says Gene Getchell of the International Franchise Association. RESIDENTIAL SALES WILL LEVEL OFF: Just over half - 52% - of relocation specialists predict that residential sales will increase in the first three months of this year, according to RELO:The International Relocation Network. Specialists say budget-minded corporations are eager for employees to sell their homes so the corporations don't have to buy them. Many have purchase guarantees for transferring workers. BEACH REPLENISHMENT AT ISSUE: New Jersey Gov. Jim Florio will meet Tuesday with officials and environmentalists to discuss beach replenishment funding at shore communities, which generate $8 billion per year in tourism. The proposal is to keep a 7% tax on lodging if the sales tax reverts to 6%; the extra 1% will help fund shore rebuilding. Opponents argue for changing the pattern of development instead. TAX PROPOSAL DISCUSSED: South Dakota Gov. George Mickelson and his legislative leaders are meeting this week to discuss his property tax credit proposal. The plan is to return as property tax rebates some $12.3 million in higher video lottery income. RELOCATION COSTS FLATTENED: Average relocation costs to move homeowners and renters in 1991 leveled off, but the cost to move new hires continues to escalate, according to Runzheimer Reports on Relocation. The report said the top policy components draining corporate relocation dollars relate to reimbursing home sale costs, carrying costs for homes in inventory and loss protection assistance. SPECIAL PACKAGE ON SLOWDOWN: RATES COULD DIP AGAIN: Homebuyers and people looking to refinance might get some relief from higher rates. Most economists say 30-year fixed mortgage rates could dip this winter or early spring before rising to 9% by year's end. But the latest rise has been enough to discourage business, many lenders say. At Home Fed Bank in San Diego, for example, applications for new loans and refinancings dropped 20% last week. MORTGAGE RATES HAVE CLIMBED: Since hitting an 18-year low of 8.23% Jan. 10, fixed mortgage rates have risen half a percentage point in five weeks, to an average 8.73% last week. During the same period, the average rate on 15-year mortgages jumped more than half a percentage point to 8.36% from 7.79%. Adjustable-rate loans slipped to 5.78% from 5.79%, according to the Federal Home Loan Mortgage Corp. BOND YIELDS TO BLAME: Blame long-term bond yields for rate hikes. Mortgage rates other than ARMs tend to follow those yields, which have been rising lately as investors see signs that the economy may be picking up. "The bond market takes good economic news and treats it as bad financial news" because recovery could lead to higher inflation, says David Berson of the Federal National Mortgage Association. (End of package.) Real Estate: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002180000D0218 SPOR-R Q Team-USA-wins-A-Pool-in-hockey........ A D0218 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