Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real,americast.usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Thu, Aug 27 1992 Date: Thu, 27 Aug 92 05:59:07 EDT Message-ID: 08-27 0000 DECISIONLINE: Real Estate USA TODAY Update Aug. 27, 1992 Source: USA TODAY:Gannett National Information Network INVESTORS TURN TO ARM FUNDS: Yield-hungry investors are flocking to adjustable-rate mortgage funds. During the first six months of this year, they poured $5.2 billion into the ARM funds, which invest primarily in securities backed by adjustable-rate home mortgages. That boosted the funds' assets to more than $18.7 billion last month. Fund companies have created 28 ARM funds this year to capitalize on the demand. ARMS HAVE BETTER YIELDS: One reason investors are descending on adjustable-rate mortgage funds: an average yield of 5.4%. The rate on one-year certificate of deposits is 3.6%, and money-market funds offer 3.1%. There is a drawback, though: ARMs carry more risks. Certificates of deposit and money-market funds are safe investments that preserve principal. ARMs are more volatile. LENNAR ANNOUNCES CONSTRUCTION: Lennar Corp., Florida's biggest developer, said Wednesday it will construct thousands of houses and apartments during the next 10 years. Officials said the company plans to build privately and publicly financed housing in areas of southern Dade County ravaged by Hurricane Andrew. The scope of the proposal depends on how government agencies decide to rebuild damaged residential areas. ADMINISTRATORS EVALUATE OFFERS: Court-appointed British administrators said Wednesday an investment package offered by CBS Inc. Chairman Laurence Tisch and U.S. investor Lewis Ranieri for Olympia & York's bankrupt Canary Wharf office project in London is the "most advanced" of the 10 under consideration. Administrators also announced creditors had agreed not to liquidate Canary Wharf. RTC TO AUCTION 25 PROPERTIES: The Resolution Trust Corp. said Wednesday it will auction 25 properties in Arizona, Colorado and Texas that it inherited from failed savings and loans. The properties - commercial land and office and retail buildings - have a book value of $6.2 million, the agency said. Bids must be sealed and received by the RTC's Phoenix office by Sept. 28 at 5:00 p.m. MDT. CIRCUS WILL BUILD THEME PARK: Circus Circus Enterprises Inc. announced Wednesday it is building Grand Slam Canyon, a five-acre entertainment attraction adjacent to its Circus Circus-Las Vegas Hotel & Casino. The $75 million project, to be assembled on a deck 14 feet atop the existing parking area, will be financed by the company's cash flow and bank borrowings. The park's opening is scheduled for July 1993. FEDERAL EXPECTS IMPROVEMENT: Federal Realty Investment Trust announced Wednesday that funds from operations should improve to about $33 million in 1992 from $26.2 million in 1991. Federal Realty completed a common share offering of 3,450,000 shares in June, netting $66 million. The company now has a total of about $90 million in cash and equivalents that officials plan to put to use shortly. INDUSTRY WAITS FOR EFFECTS: Producers of manufactured housing are taking a wait-and-see attitude when it comes to determining what effect the damage caused by Hurricane Andrew will have on the industry, Bloomberg Business News reported Wednesday. Analysts say the damage will boost sales because many displaced people will move into manufactured housing. In 1989, producers in the Carolinas benefited from Hurricane Hugo. UCB JOINS HOME LOAN SYSTEM: The Federal Housing Finance Board Wednesday approved United Carolina Bank as the 1,000th commercial bank member of the Federal Home Loan Bank System. United Carolina Bank, based in Whiteville, N.C., has assets of $2.5 billion. It operates 117 branch offices in 68 North Carolina communities. Bank System members include savings associations, savings banks, credit unions and insurance companies. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 7.87% Wednesday, unchanged from Tuesday but down from 7.96% the week before. They were at 9.17% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.20%, unchanged from Tuesday but down from 5.30% the week before. A year ago they were at 7.03%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.40% Wednesday, unchanged from Tuesday but down from 3.43% the week before. A year ago they were at 5.62%. 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 30-year bonds showed a decline Wednesday, listing at 7.41%. That's down 0.06 from rates of 7.47% Tuesday but up 0.10 from 7.31% the week before. A year ago T-bonds were at 8.05%. 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