Path: bloom-picayune.mit.edu!enterpoop.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 Wed, Oct 21 1992 Date: Wed, 21 Oct 92 04:30:09 EDT Message-ID: Lines: 124 10-21 0000 DECISIONLINE: Real Estate USA TODAY Update Oct. 21, 1992 Source: USA TODAY:Gannett National Information Network HOUSING STARTS ARE ON THE RISE: Housing starts rose 1.4% last month, building on August's 12.6% jump, the Commerce Department said Tuesday. Starts hit an annual rate of 1.26 million. And building permits issued - a barometer of future activity - climbed 3.7% after a 0.4% drop in August, Commerce says. Single-family home starts accounted for 94,000 of last month's 110,000 total. (For more, see special Starts package below.) EPA SAYS LEAD IS PREVALENT: The Environmental Protection Agency said Tuesday that 130 cities have failed in their efforts to meet EPA's lead action level of 15 parts per billion established in the Safe Drinking Water Act. EPA says this underscores the importance of individuals taking charge of their own tap water supply. The American Water Institute recommends removing lead by using a home water filter system. HOMEOWNERS CAN TEST WATER: The Environmental Protection Agency said Tuesday lead is present in home water supplies at alarming levels. Virtually all tap water has some level of lead. One thing a family can do is have their tap water tested to see if lead occurs at dangerous levels. These tests generally cost between $30 and $50, and should be performed at different times of the day and more than once a year. REAL ESTATE BUST COSTS MARRIOTT: Marriott Corp.'s decision to split itself in half, thus protecting its hotel division, is a result of the real estate bust. When recession hit in 1989, Marriott kept building in the face of fewer travelers and the nationwide glut of hotel rooms. About the time it discovered it could no longer sell its new hotels, the real estate market crashed. The division has languished since. FANNIE MAE INCREASES DIVIDEND: The board of directors of the Federal National Mortgage Association Tuesday voted to increase its quarterly dividend on its common stock to 40 cents per share for the previous quarter, from 34 cents per share. The dividend will be payable on Nov. 25 to shareholders of record as of the close of business Oct. 30. HONG KONG OFFICE RENT CLIMBS: Office rents in top buildings in Hong Kong's Central financial district climbed 5.8% in the third quarter of this year and are expected to rise further, said real estate consultants Jones Lang Wootton. The rise will be glad tidings for Hongkong Land Holdings, part of the Jardine Matheson Holdings group of companies, which owns many of the office buildings in the Central area. SESSION WILL EXAMINE RTC SALES: Stephen Roth, president of Secured Capital Corp., a leading real estate investment banking firm, will be moderating a session on the Resolution Trust Corp.'s non-performing loan sales. The session is at the Los Angeles Westin Bonaventure Hotel on Oct. 23. The session will deal with the RTC sale of $15 billion in non-performing loans on commercial and multifamily properties in the next year. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.01% Tuesday, unchanged from Monday but down from 8.02% the week before. They were at 8.82% a year ago. For 30-year adjustable-rate mortgages, the rates were 4.97%, unchanged from Monday but down from 5.02% the week before. A year ago they were at 6.71%. ARM INDEXES INCREASE: The one-year Treasury ARM index rates were listed at 3.26% Tuesday, up from Monday and up from 3.02% the week before. A year ago they were at 5.33%. For the 11th District ARM index, rates were at 4.874%, unchanged from Monday and unchanged from the week before. A year ago they were at 6.845%. T-BONDS INCREASE: Treasury security rates for the 30-year bonds showed an increase Tuesday, listing at 7.64%. That's up 0.07 from rates of 7.57% Thursday. Rates were up 0.23 from rates of 7.41% the week before. A year ago they were at 8.09%. SPECIAL PACKAGE ON STARTS: ECONOMISTS ARE OPTIMISTIC: Economists are optimistic after two straight months of increases in housing starts. "These are some of the best numbers to come down the pike in a long time," says Irwin Kellner, chief economist at Chemical Bank in New York. And the news should improve in months ahead. Construction tied to Hurricane Andrew rebuilding had little effect on September's figures, the Commerce Department said. ACTIVITY SHOULD KEEP RISING: Activity should rise as Andrew rebuilding gears up. Mortgage rates - lowest in 20 years - have been heading higher. That could trigger a rush of homebuilders eager to lock in low rates. Leonard Mills, economist at the Federal National Mortgage Association, predicts 1.3 million housing units will be built next year. Housing gains should unleash consumer spending. ECONOMIC EFFECT MAY RIPPLE: "Once you're in the store to buy a couch, you could easily decide to buy a suit or a pocketbook," says Kellner. That helps create jobs and buoy confidence. But not everybody believes the gains will ripple on. "I don't see any vigor in the housing market until there are significant improvements in the job market and income growth," says Norman Robertson, economist at Mellon Bank. (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