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 Mon, Sep 28 1992 Date: Mon, 28 Sep 92 04:52:55 EDT Message-ID: 09-28 0000 DECISIONLINE: Real Estate USA TODAY Update Sept. 28, 1992 Source: USA TODAY:Gannett National Information Network FIXED-RATE MORTGAGES RISE: For the first time in a month, the average fixed-rate mortgage popped up above 8%. But economists expect the uptick to stop there. "Home buyers shouldn't be concerned," says Kermit Baker, director of economics for Cahners Publishing. "We see rates around 8% through the end of the year." Economists say rates should actually fall a bit this week. (For more, see special Rates package below.) SURVEY CRITICIZES RTC: A survey released Friday by the General Accounting Office, Congress' investigative arm, says the Resolution Trust Corp. isn't responsive to buyers of commercial real estate. The survey of the Society of Industrial and Office Realtors said RTC, the nation's thrift cleanup agency, didn't provide timely responses to requests for information about its commercial properties. HOMEBUILDERS INCREASE VOLUME: U.S. homebuilders will nail down a 10% increase in volume for 1992, with total permits for the year reaching 1,050,000 units, according to the U.S. Housing Markets. Single-family builders are enjoying their busiest year since 1989. More than 80% of authorized new units in the nation this year will be single-family homes. But the decline in rental apartment construction continues. O&Y AGREES TO END LEASE: Olympia & York Development Ltd., the bankrupt Canadian real estate group, and American Express Co. said Friday they agreed to terminate American Express' lease in O&Y's Canary Wharf development in east London. In addition, the companies agreed to drop claims against each other. The agreement was reached Friday in U.S. Bankruptcy Court in New York. AMERICAN EXPRESS WON'T SUE: American Express said Friday it will not try to recover $37.7 million it says it is owed by Olympic & York for fitting out office space at O&Y's Canary Wharf development in London. American Express had planned to pool about 1,500 staff and consolidate its London operations in the Canary Wharf building. It will now stay at its current headquarters in London. WATERSHED LANDS ARE CLOSED: The San Francisco Water Department said Friday that the Department's Watershed Lands in the Bay Area are temporarily closed to most activities due to hazardous fire conditions. Officials said the closure is for the reduction of risk of wildland fires that could cause destruction of watersheds and adjoining urban areas. They will be closed until weather conditions improve. WELLSFORD WILL SELL SHARES: Wellsford Residential Property Trust plans to raise about $75 million by selling common shares to the public for the first time, Bloomberg Business News said Friday. The New York company, which expects to qualify as a real estate investment trust, filed with the Securities and Exchange Commission to sell 3.45 million common shares. Proceeds will be used to repay outstanding mortgage debt. ATLAS LEASES PROPERTIES: Atlas Corp.'s will lease gold sites in Oregon and Idaho to Newmont Mining Corp. Its Grassy Mountain and Musgrove Creek properties will be leased to Newmont for $30 million. Under terms of the transaction, expected to close in October, Atlas will get $22.5 million, plus $7.5 million as an advance royalty payment. AFFORDABILITY STRATEGY RELEASED: The Final Rule for the Comprehensive Housing Affordability Strategy includes shortening the community comment period from 60 to 30 days, according to the National Association of Housing and Redevelopment Officials. The rule will also create a stronger relationship between needs and strategies and identify units that meet Housing Quality Standards. SPECIAL PACKAGE ON RATES: AVERAGE RATES BOTTOMED OUT: After a seven-month decline, the average 30-year fixed rate hit bottom at 7.84% three weeks ago. Last week, it rose to 8.02% from 7.89% the previous week, the Federal Home Loan Mortgage Corp. says. That's the highest average since early August. Mortgage rates are controlled by long-term bond yields because most mortgages are bundled into securities that compete with bonds. BOND YIELDS JUMP: Bond yields shot up early last week after an unusually strong report on housing starts. But bad economic reports Friday sent bond yields down again. The average on 15-year mortgages rose to 7.48% from 7.37% the week before. The average one-year adjustable rate fell to 5.02% from 5.03%. LOW RATES HELPED MARKET: The National Association of Realtors said the low rates opened up homeownership to more buyers during August. The association recorded a seasonally adjusted annual sales rate of 3.34 million existing single-family homes in August, up 4.7% from August 1991. NAR officials say first-time buyers are continuing to dominate activity in many markets. (End of package.) 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