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 Fri, Oct 23 1992 Date: Fri, 23 Oct 92 04:43:42 EDT Message-ID: 10-23 0000 DECISIONLINE: Real Estate USA TODAY Update Oct. 23-25, 1992 Source: USA TODAY:Gannett National Information Network TAX CREDIT LOOKS DEAD: A proposed tax credit for first-time home buyers - ballyhooed by President Bush last January but recently deleted from a tax bill by congressional conferees - appears unlikely to gain favor during 1993. David Seider, chief economist for the National Association of Home Builders, said Thursday that the group will lobby again for the tax credit in January, but chances of passage are diminishing. (for more, see special Tax package below.) INDUSTRY OPTIMISM SLIDES: The construction industry remains depressed and optimism continues to slide, according to The Dun & Bradstreet Corp.'s latest monthly survey of 200 U.S. construction firms. The New Orders Optimism Index for the coming three months fell 6 points in September to 9, meaning respondents expecting increases outnumber those expecting decreases by 9%. The August index fell 16 points. SURVEY PREDICTS MORE EMPLOYMENT: A new Dun & Bradstreet Corp. survey measuring expected construction employment levels in the next three months rose slightly in September. The outlook for higher prices during the same period also rose in September. Officials say the boom in single-family housing construction has offset a decrease in commercial property construction. FANNIE MAE ANNOUNCES COUNCIL: The Federal National Mortgage Association Thursday announced the company's new Housing Impact Advisory Council and its 35 members who will advise on affordable housing programs for low- and moderate-income home buyers. Fannie Mae is preparing to meet new affordable housing goals established in legislation passed by Congress to modernize regulation of the secondary mortgage market. NEIGHBORS SUE SEATTLE AIRPORT: Neighbors of Seattle-Tacoma International Airport Wednesday filed suit in U.S. District Court against the airport's operator, Port of Seattle. The suit alleges that the Port conspired to lower property values before initiating a buy-back plan. Among claims: The Port manipulated its Transaction Assistance Program, designed to help residents sell their homes, to drive down market value. TRUST FILES FOR OFFERING: Karanzco Realty Trust Inc. filed a registration statement with the Securities and Exchange Commission for the initial public offering of six million common shares at a price between $21 and $23 a share, according to Bloomberg Business News. The newly formed real estate investment trust said it will use the proceeds to buy 25 neighborhood and community shopping centers in the Northeast. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.01% Thursday, unchanged from Wednesday and unchanged from the week before. They were at 8.82% a year ago. For 30-year adjustable-rate mortgages, the rates were 4.97%, unchanged from Wednesday and unchanged from the week before. A year ago they were at 6.71%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 3.26% Thursday, unchanged from Wednesday and up from 3.09% the week before. A year ago they were at 5.33%. For the 11th District ARM index, rates were at 4.874%, unchanged from Wednesday 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 a decrease Thursday, listing at 7.61%. That's up 0.01 from rates of 7.60% Wednesday. Rates were up 0.11 from rates of 7.50% the week before. A year ago they were at 8.03%. SPECIAL PACKAGE ON TAX: MARKET UPTURN HURTS CREDIT: The proposed tax credit for first-time home buyers looks to be dead. The National Association of Home Builders had supported the tax credit as a short-term incentive to get the housing market moving which, in turn, would give momentum to an economic recovery. But there are signs the housing market is improving on its own. Housing starts rose in September for the second straight month. CONGRESS CUTS CREDIT TO NOTHING: Housing starts are now at an annual rate of 1.25 million. Last January, President Bush proposed in his State of the Union address that first-time home buyers receive a $5,000 tax credit over two years as part of an economic package. The Senate trimmed the proposed credit to $2,500, but the credit was eliminated by House and Senate conferees who worked out the tax bill's final version. VETO MAY RESUSCITATE CREDIT: Bush has said he will veto the bill. Ken Beirne, a spokesman for the National Association of Realtors, said that would improve chances for resurrecting the tax credit once the new Congress takes office in January. The group still supports a bill as is because it contains other provisions the industry wants like reauthorization of mortgage revenue bonds to provide below-market financing. (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. 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