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 Thu, Aug 6 1992 Date: Thu, 6 Aug 92 04:32:41 EDT Message-ID: 08-06 0000 DECISIONLINE: Real Estate USA TODAY Update Aug. 6, 1992 Source: USA TODAY:Gannett National Information Network HOME SALES SLOW IN JUNE, JULY: The economy turned in an uneven, sluggish performance in June and July, as lower mortgage rates failed to ignite home sales, the Federal Reserve said Wednesday. In its latest report, the Fed said that lower interest rates have spurred homeowners to refinance mortgages but have "provided little impetus to home sales in most places." (For more, see special Report package below.) GD EXECS CONVICTED: A federal jury in Miami Wednesday convicted the president and a vice president of General Development Corp. on 40 counts accusing them of defrauding thousands of prospective Florida homebuyers. Prosecutors said 10,000 customers were deceived into buying overpriced homes that sold for an average $74,000, although they were worth $52,000 or less. CRA WANTS HOUSING IN WATTS: The Community Redevelopment Agency Wednesday announced that it is seeking proposals from developers and local property owners to construct affordable family housing units in residential areas of the Watts section of Los Angeles. The CRA's notice of program availability represents more than $3 million in construction loans. The plan is aimed at owners of vacant lots in Watts neighborhoods. HOME PRICES UP SLIGHTLY: Home prices in the Pacific Northwest and parts of the Midwest rose in the spring, the National Association of Realtors said Wednesday. Richland, Wash., saw price increases of 21.7%; in Spokane, prices rose 19.7%, the NAR said. However, the national increase was only 2.3%, compared to inflation's rise of 3.1%. The weak economy was cited as a reason for the poor national showing. GEORGIA TAKES PLUNGE IN PRICES: Home sales dropped during the spring quarter in 16 states and the District of Columbia, the National Association of Realtors said Wednesday. That drop is compared to home sales for the second quarter a year ago. Georgia saw the steepest decrease at 27.6%, followed by 13% for Delaware. The West saw sizeable gains. Sales were up 28.2% in Utah, 25.9% in Wyoming and 17.7% in New Mexico. LEHMAN HIKES FREDDIE MACS: Lehman Bros. has increased the size of its Federal Home Loan Mortgage Corp. Series 1366 real estate mortgage investment conduit to $685 million from $500 million, Freddie Mac said Wednesday. The REMIC is backed by 15-year Gold 7.5% issues and was priced July 30 at a speed equal to 195% of the Public Securities Association model. Settlement is scheduled for Sept. 30. FIXED-RATE MORTGAGES UNCHANGED: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.05% Wednesday, unchanged from Tuesday and down from 8.08% a week ago. They were 9.44% a year ago. For 30-year adjustable rate mortgages, the rates were 5.37%, unchanged from Tuesday and down from 5.45% a week ago. A year ago they were at 7.22%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.57% Wednesday, unchanged from Tuesday and up from 3.53% a week ago. A year ago they were at 6.18%. For the 11th District ARM index, rates were at 5.258%, unchanged from Tuesday and down from 5.290% a week ago. A year ago they were at 7.155%. T-BONDS DECLINE: Treasury security rates for 30-year bonds showed a decline Wednesday, listing at 7.42%. That's down 0.01 from rates of 7.43% Tuesday and down 0.03 from rates of 7.45% a week ago. A year ago T-bond were at 8.18%. SPECIAL PACKAGE ON REPORT: NEW ENGLAND AT STANDSTILL: Retailers say the New England economy is at a standstill, according to the latest report from the Federal Reserve. Office leasing is on the increase on Long Island, northern New Jersey, Westchester County and mid-Manhattan. Lenders say lower mortgage rates have spurred refinancing. In the eastern Midwest, mortgage refinancing is the only type of loan demand that isn't flat. IMPROVEMENT SEEN IN SOUTHEAST: Manufacturers in the Southeast report moderate improvement. In real estate, sharp drops in mortgage rates have yet to boost sales. Home sales have been strongest in South Carolina. Orders for home appliances, carpets, furniture and cabinets are up and home sales are rising modestly. An increase in mortgage refinancing applications is being offset by weakness in commercial loans. HOME CONSTRUCTION MIXED IN WEST: Manufacturing continues "to lead the district's recovery" in the Midwest, according to the Fed report. Lower mortgage rates have spurred refinancing. Home construction in the West is flat. Home builders expect housing starts will remain steady through the end of the year. In California, permits for new homes the first five months of the year fell 12%. Construction is up in Arizona. (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