Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Tue, Apr 28 1992 Date: Tue, 28 Apr 92 05:41:28 EDT Message-ID: 04-28 0000 DECISIONLINE: Real Estate USA TODAY Update April 28, 1992 Source: USA TODAY:Gannett National Information Network HOME SALES CONTINUE STRONG: Sales of existing houses stayed robust last month for the second straight month, a sign that economic recovery may be gathering momentum. The National Association of Realtors said Monday existing houses sold at a seasonally adjusted annual rate of 3.49 million last month, the same as February and the fastest annual pace in three years. (For more, see special Home package below.) MORTGAGES SOLE GROWTH AREA: Home mortgages were the only growth area seen in a survey looking at 1992 loans. Bank executives predicted in a survey by the Grant Thornton accounting and management consulting firm that 1992 loans at best may equal last year's depressed levels. The national survey questioned 600 bank executives in March. Sixty-two percent said residential mortgage lending will continue to surge. SOME STILL SUBSCRIBE TO CRUNCH: There's still a credit crunch, according to 38% of bank executives responding to a survey out Monday. A credit crunch was defined in the survey by Grant Thornton as an unwillingness or inability to make loans to qualified buyers at reasonable pricing and terms. Another 11% think there was a credit crunch - but it's over. NAT'L QUAKE INSURANCE URGED: The United Homeowners Association Monday called on Congress and the administration to make the enactment of a national earthquake hazard reduction and insurance program an urgent national priority. The Federal Emergency Management Program says at least 39 states are at risk for moderate to catastrophic earthquakes. But less than 10% of homeowners are insured against earthquakes. FANNIE MAE TO AID NETWORKING: The Federal National Mortgage Association said Monday it will hold a business-card exchange for Washington-area commercial and industrial supply companies owned by minorities and women on May 7. The event will be attended by purchasing representatives from Fannie Mae, Washington Gas Light, MCI and other regional corporations. RSVP to Michele Jackson, 202-752-5995, by Friday. BROKERS' ALLIANCE FORMED: Grubb & Ellis and Better Homes and Gardens Real Estate Service Monday announced the formation of a business alliance for residential real-estate service in Southern California. The Area Development Alliance - Grubb & Ellis' southern California residential offices and the BH&G marketing network - will be involved in developing a regional brokers' network. FIXED-RATE MORTGAGES CLIMB: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.85% Monday, up from Thursday and up also from 8.76% the week before. They were at 9.53% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.13%, up from Thursday and up also from 6.11% the week before. A year ago they were at 7.36%. ARM INDEXES INCREASE: The one-year Treasury ARM index rates were listed at 4.32% Monday, up from Thursday and up from 4.11% the week before. A year ago they were at 6.25%. For the 11th District ARM index, rates were at 5.800%, unchanged from Thursday and unchanged also from the week before. A year ago they were at 7.848%. T-BONDS JUMP: Treasury security rates for the 30-year bonds showed an increase Monday, listing at 8.11%. That's up 0.07 from rates of 8.04% Thursday and up 0.09 from rates of 8.02% the week before. A year ago T-bonds were at 8.22%. SPECIAL PACKAGE ON HOME: PACE COULD MAKE YEAR THE BEST: The National Association of Realtors said Monday existing houses sold at a seasonally adjusted annual rate of 3.49 million last month, the same as February. If the pace is sustained, this would be the best year for existing-home sales since 1988, which was the best year in that decade. "We believe we've finally turned the corner," said NAR President Dorcas Helfant. SOME SAY IT'S JUST A BLIP: Other experts caution this could be just a blip. Home sales spurted last May and June after the gulf war, leaving economists proclaiming recovery. But sales retreated in July to their weak 1990 pace. "We think this is a much more sustainable type of boost," says Federal National Mortgage Association economist Len Mills. BUYERS UNFAZED BY CLIMBING RATES: The March sales looked especially strong because homebuyers were unfazed by rising mortgage rates. The average for a 30-year fixed-rate home loan hit a March peak of 9.03%, vs. a February peak of 8.83%. Current average: 8.85%. The median price of an existing home sold last month was $104,000. That's up 3.7% since December, vs. overall inflation of 3.5% in that time. (End of package.) Real Estate Editor: Beth Mann. (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