New-York tribune., 1921-04-04
Tendency Is Toward
Normal, According
TO Mortgage Go.
u. S. Mortgage Co.'s Infor-
nation Is Improvement
Is on Way i'll Many Angles
of the Housing Problem

The United States Mortgage and
Trust Company, in view of the degree
of uncertainty as to economic condi
tions at present existing, particularly
with respect to the housing situation
throughout the country, following its
long established custom, has obtained
through its correspondent banks, mort
gage representa- tives and attorneys in
over fifty cities in the South West and
Middle West a consensus of opinion
relating to the housing problem.
The opinions show that the shortage
in business and residence space, par
tlculary the latter, brought about by
lack OF construction during the war
has not been met to any large extent
by reason of excessive abor and build
ing costs and to what is perhaps of
equal Importance, n condition in the
building trades which until reccntly has
made TOR incflicicncy and uncertainty.
The seriousness Of the shortage is not ia
be minimized. but the encouraging fact
noted ls quite general if slight cvj-
dchce OF Improvement. Rents are nat
uraliy holding high and firm, pending
the erection of more buildings.
Volume and Class of Construction
The reports indicate clearly that the
volume of building construction is sub
stantially reduced. This is due in q
measure to higher money rates and the
sudden recession from wartime nros-
pcrity. The residential shortage being
the most acute and financial REQUIRE
hehts IN connection with same being.
more readily met by local funds. it is
nut natural that new construction is
cont'ned largely to homes. Such busi-
ness buildings as arc being erected
consist of structures for public use
buildings for special utilities and oc
caslonai business buildings for press
ing needs. There is but small amount
OF business property changing hands,
owing to financial conditions and to a
reiuctance to capitalize increased
values because Of the operations of the
excess profits tax. There is a moderate
activity IN residence properties, par
Ncuiarly in the smaller types.
Supply Mortgage Rates
In general there seems to be fair
supply of mortgage funds, but with
rates ruling high and lenders cautious
as TO building costs and types of prop
erty. The funds Of the large life in
surance companies, which arc going
increasingly into city and farm loans,
are now an important factor While
rates are firm in certain sections, the
tendency may be SAID to be slightly
downward.
While labor costs are almost uni
formly lower, the largest reductions
are confined to unskilled labor The
trend of wages, however, is clearly
downward. Building costs have gener-
ally dropped somewhat more than labor
costs, apparently as the result Of re-
ductions in materials and greater eff
cheney of labor, which latter in turn
has been Influenced by widespread un-
employment.
1t is significant to note that retail
prices have always invariably failed to
approximate the substantial reductions
in wholesale prices, retail merchants
resorting to special sales and increase d
advertising to tide over situation
which is apparently improving. Pur-
chases are being confined much more
generally to essentials and buyers are
more cautious as to prices and quality.