Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Tue, Jun 2 1992 Date: Tue, 2 Jun 92 05:20:35 EDT Message-ID: 06-02 0000 DECISIONLINE: Real Estate USA TODAY Update June 2, 1992 Source: USA TODAY:Gannett National Information Network CONSTRUCTION SPENDING FALLS: Construction's uneven recovery continued in April, the Commerce Department reported Monday. Construction spending fell 0.3% in April after three months of gains. The jump in residential housing was more than offset by declines in commercial and government construction. MICH. BANK CUTS PRIME RATE: Michigan's National Bank of Royal Oak cut its prime lending rate to 6% from 6.5% as of Tuesday. The cut affects new loans made to its best business and commercial customers. Typically, variable rate loans such as home equity lines of credit are tied to the prime rate, which has been 6.5% since December at most banks. Chemical Bank in New York cut its rate to 6.25% in April. LOWER INTEREST RATES UNLIKELY: Some analysts suspect that the Federal Reserve will lower interest rates further to boost the economy, causing banks to undergo a further round of prime rate-cutting. But reports Monday showed an expanding manufacturing sector, making a Fed rate cut seem less likely. National Bank of Royal Oak in Michigan, taking the initiative, cut its prime rate to 6% from 6.5% as of Tuesday. TRADE TALKS SPUR DEVELOPMENT: Anticipating a North American free trade agreement, Wal-Mart last week revealed an expanded plan with CIFRA SA, Mexico's largest retailer. Six to eight new warehouse clubs are planned for Mexico City by 1993. The companies also plan distribution centers and supermarkets. Wal-Mart first announced plans to build a warehouse club in Mexico last year. RETAILERS FOCUS ON MEXICO: North American free-trade talks have drawn attention to Mexican markets, say analysts. Retail developer Melvin Simon has signed joint ventures to build malls in Monterrey, Guadalajara and Mexico City. Dillard Department Stores plans to anchor three new malls in Mexico City. Oshman's Sporting Goods has opened two Oshman's-Mexico stores in Mexico City. A third is planned for July. AUCTION SUCCESSFUL IN CONN. Connecticut saw its most successful auction ever Saturday, with the selling of 92 properties totaling $7.5 million. The properties included single-family homes, condominiums, development properties and commercial properties. The sale was conducted by the J.P. King Auction Co. for Fleet Bank, N.A. WRIT PROPOSES STOCK OFFERING: Washington Real Estate Investment Trust has filed a registration statement with the Securities and Exchange Commission for a public offering of 2.4 million shares, the company announced Monday. WRIT, equity real estate investment trust, currently owns nine shopping centers, six office buildings, five high-rise apartment buildings and nine business centers. UPS PROPERTY PURCHASE NIXED: United Parcel Services Inc., has decided not to purchase approximately 30 acres of land in Hollywood, Calif., Hollywood Park Inc., announced Monday. UPS cited lowered expectations for a new facility and economic concerns as reasons for not buying the property, which was priced at $18 million. TOLEDO AGENCY IMPROVES: The Lucas Metropolitan Housing Authority in Toledo, Ohio, has made big improvements since director Donald Troendle took over last year, a federal official said Tuesday. The agency was labeled "troubled" in 1987 due to vacancies, arrears, drugs and other problems. FIXED-RATE MORTGAGES JUMP: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.60% Monday, up from 8.53% Thursday. They were at 9.45% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.96%, up from 5.93% Thursday. A year ago they were at 7.17%. Rates are not available from a week ago because of the Memorial Day holiday. ARM INDEXES RISE: The one-year Treasury ARM index rates were listed at 4.27% Monday, up from 4.12% Thursday. They were at 6.13% a year ago. For the 11th District ARM index, rates were at 5.427%, down from 5.611% Thursday. A year ago they were at 7.501%. Rates are not available from a week ago because of the Memorial Day holiday. T-BONDS CLIMB: Treasury security rates for the 30-year bonds showed a increase Monday, listing at 7.88%, up from 7.86 Thursday. A year ago T-bonds were at 8.34%. Rates are not available from a week ago because of the Memorial Day holiday. Real Estate Editor: Christopher Goldthwaite. (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