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 Fri, Jul 31 1992 Date: Fri, 31 Jul 92 04:32:20 EDT Message-ID: 07-31 0000 DECISIONLINE: Real Estate USA TODAY Update July 31-Aug. 2, 1992 Source: USA TODAY:Gannett National Information Network MORTGAGE APPLICATIONS DROP OFF: Applications for mortgages fell slightly the week ended July 24, following two weeks of double-digit gains sparked by a cut in interest rates July 2, the Mortgage Bankers Association says. Applications fell 2.8% after rising 31% the week ended July 17 and 72% a week earlier. Still, the level of applications remains near its peak. NEW-HOME SALES RISE: The government Thursday said sales of new homes rose in June for the first time in five months, and analysts predicted falling mortgage rates and a possible tax credit would build momentum. The government said sales rose 7.9% to a seasonally adjusted annual rate of 572,000 units, up from 530,000 in May. The report also showed sales declines in March-May weren't as bad as estimated. INSURANCE USED TO TEMPT BUYERS: Job worries are keeping many would-be homebuyers on the sidelines. As a result, a small but growing number of brokers and builders are offering layoff insurance. Recent surveys show that buyers in many parts of the USA remain leery of the home market despite more affordable prices and low interest rates. The big chill: Fear of joining the growing ranks of the unemployed. (For more, see special Mortgage package below.) BENTSEN PUSHES BUYER TAX CREDIT: Senate Finance Committee Chairman Lloyd Bentsen, D-Texas, Thursday took decisive action on his urban aid package by proposing a $2,500 tax credit for first-time buyers of new and existing homes. The proposed package, passed Wednesday by the Senate Finance Committee and to be voted on shortly by the full Senate, would create 240,000 jobs and stimulate construction of 125,000 homes. DEAL GOOD FOR REST OF THE YEAR: Under a proposal Thursday from Senate Finance Committee Chairman Lloyd Bentsen, D-Texas, a $2,500 tax credit for first-time homebuyers would take effect immediately and would expire at the end of the year. The proposal is not limited by buyers' income levels. Other provisions of the proposed package include extending low-income housing tax credit and mortgage revenue bond programs. MIP SELLS TWO PROPERTIES: MIP Properties Inc., based in Santa Monica, Calif., says it has closed the sale of two properties in San Dimas. The investments sold were a 68,000-square-foot building, known as Building C, and the adjacent vacant land. The transactions, plus the redemption of a portion of an interest in a partnership, generated cash consideration of $5.45 million. FIXED-RATE MORTGAGES UNCHANGED: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.08% Thursday, unchanged from Wednesday and down from 8.09% the week before. They were at 9.50% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.45%, unchanged from Wednesday and down from 5.50% the week before. A year ago they were at 7.21%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.53% Thursday, unchanged from Wednesday and unchanged from the week before. A year ago they were at 6.29%. For the 11th District ARM index, rates were at 5.290%, unchanged from Wednesday and unchanged also from the week before. A year ago they were at 7.155%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Thursday, listing at 7.42%. That's down 0.03 from rates of 7.45% Wednesday and down 0.21 from 7.53% the week before. T-bonds were at 8.35% a year ago. SPECIAL PACKAGE ON MORTGAGE: INSURANCE IDEA CATCHES ON: Recent surveys show that fear of becoming unemployed is holding off some would-be homebuyers. Home sellers are helping to remove some of the uncertainty by offering to cover monthly mortgage payments for buyers who lose their jobs. Only a handful of firms have put the idea into practice, but it's beginning to catch on. PRUDENTIAL PLAN COSTS JUST $20: Prudential Realty of California offers a guaranteed mortgage payment plan. Buyers of homes under $1.25 million can get up to $5,000 a month in loan payments for up to 12 months if they are laid off. Buyers are only covered if they lose their jobs during the first year they own a home. The plan, which costs $20, is offered to buyers who buy homes listed with or sold by Prudential. SOME INSURERS OFFER COVERAGE: New Jersey builder Calton Homes started offering layoff coverage - $1,500 a month for up to six months - in Nov. 1990. The plan ended earlier this year. Most plan sponsors have been paying claims out of their own pockets, but some insurers also offer coverage. Prudential's plan, for example, is backed by RLI Insurance Co., a Peoria, Ill.-based firm. (End of package.) Real Estate Editor: 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