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 13 1992 Date: Thu, 13 Aug 92 05:17:49 EDT Message-ID: 08-13 0000 DECISIONLINE: Real Estate USA TODAY Update Aug. 13, 1992 Source: USA TODAY:Gannett National Information Network SENATE OKS BREAK FOR HOMEBUYERS: The Senate voted Wednesday to give first-time homebuyers a $2,500 tax break and broaden the availability of a tax-free savings plan, but voted down a cut in the capital gains tax. The measures were approved in a compromise amendment to a $31 billion tax bill being debated in the Democratic-controlled Senate. QUAKE BILL RECEIVES SETBACK: Legislation that would establish a national earthquake insurance plan in the wake of recent California tremors received a setback Wednesday. A federal study said estimates of damage from even a major quake have been greatly exaggerated. Supporters of the bill said the temblors in Big Bear and Landers show the need for a national system to insure property of individuals and businesses. CONTRACT RATES FALL: Contract interest rates on conventional mortgages used to finance single-family homes averaged 8.06% in late June, according to the Federal Housing Finance Board. That's down 0.16% from late May. The aggregate average mortgage rate reflects decreases in the rate on fixed-rate mortgages. Interest rates on adjustable-rate mortgages were largely unchanged from a month ago. MORTGAGE INDEX DROPS: The Mortgage Bankers Association said Wednesday its basic mortgage application index fell 11.6% to a seasonally adjusted 263.3 in the week ended Aug. 7. In the preceding week the index stood at 298.0. The refinancing application index dropped to 1012.1 from 1191.4. The index is sponsored by the MBA and tracks the pace of applications for new mortgages and refinancings. BAY CLEANUP TO SLOW BUILDING: A plan to increase the scope of the cleanup of Chesapeake Bay could limit development in some fast-growing suburbs in Maryland and Virginia. On Wednesday, state governors, district of Columbia Mayor Sharon Pratt Kelly and EPA Chief William Reilly met to sign a pact that intensifies the nine-year-old cleanup. The plan is also expected to force sewage plant construction in Pennsylvania. SUN MICROSYSTEMS SIGNS LEASE: Sun Microsystems Inc. announced Wednesday that it has signed a long-term lease for three buildings in Chelmsford, Mass. The 320,000 square feet of office and production space in Altid Park will serve as the company's East Coast headquarters and will consolidate four existing Sun offices. Sun will lease an additional building as part of the agreement with Teacher's Realty Corp. PRESIDENTIAL PROFITS FALL: Presidential Realty Corp. said second-quarter profits from operations fell to $475,000, or 13 cents a share, from $565,000, or 17 cents, a year ago, Bloomberg Business News reported Wednesday. In the previous quarter, a $40,000 loss from the sale of properties and investments resulted in net income of $435,000, or 12 cents a share. LEWIS HOMES ACQUIRES SITES: The Lewis Homes group of companies anounced Wednesday its plan to purchase four sites in key single family home markets throughout California. Lewis Homes is the 10th largest developer in the United States. The largest acquisition is a 211-acre plot, purchased from the Bravo Family Trust, where Lewis has already built about 1,000 homes. HOUSING COMPLETIONS DROP: Housing completions in the United States declined 3.2% in June to a seasonally adjusted annual rate of 1.165 million, the government reported Wednesday. During May, completions increased 12.8% to 1.204 million, according to the Commerce Department and Department of Housing and Urban Development. Completions trial starts of new construction by several months. SAXON ISSUES BONDS: Saxon Mortgage Funding Corp. priced $170 million of collateralized mortgage bonds on Monday. The bonds will be underwritten by Bear, Stearns & Co. Inc. The bonds will be issued as Series 92-12 by Ryland Mortgage Securities Corp., and will be collateralized by 15 and 30-year fixed rate mortgage loans provided by Saxon. The transaction will close in September. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.06% Wednesday, unchanged from Tuesday but up from 8.05% the week before. They were at 9.27% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.30%, unchanged from Monday but down from 5.37% the week before. A year ago they were at 7.14%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.57% Wednesday, unchanged from Monday and unchanged from the week before. A year ago they were at 5.88%. For the 11th District ARM index, rates were at 5.258%, unchanged from Tuesday and unchanged from the week before. A year ago they were at 7.155%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed an increase Wednesday, listing at 7.32%. That's up 0.01 from rates of 7.31% Tuesday but down.10 from 7.42% the week before. A year ago T-bonds were at 8.06%. Real Estate Editor: Martin Baucom. (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