Evening star., 1936-02-15
RATE Of INTEREST
SHOWN DECLINING
6 Per Cent Dominant in
Most Sections-ScaIe Low.
er in Biq Cities.

gage money costs for home ownership
and the degree to which this cost,
about / per cent lower than year
ago, still varies with distance from
the money centers, are measured in
reports to the National Association Of
Real Estate Boards in special in
ouiry supplementing the associations
semi-annual survey of the real estate
market.
The inquiry, detailed findings of
which are released today, gives also
the first general quantitative measure
of upturn in residential rents over the
country. There is appreciably less
geographical variation now with re-
spect to interest costs for home buy
ers and home builders than was
shown by similar inquiry six months
ago.
Member boards throughout the
country were asked by the associ-
alton. What is the actual interest
rate at which first mortgage loans on
moderately priced homes are now most
commonly being made in your COM
munity?" The organization feels that
loans of this type must turn the key
to unlock new home building.
Had S4S Replies.
OF 267 cities replying to this special
inquiry, some checked a single rate
some indicated range, giving a total
of 346 replies.
No city reported rate under ~
per cent and no city rate over pei
cent as common for this key type oi
loan. The cost commonly ranges tc
under per cent in 80 per cent OF
cities reporting, as low as per cent
in IA per cent of cities.
The per cent rate is still dominant
In every geographical section but one
1t is reported by AZ per cent of the
cities of the country. A per cent
rate is most commonly cited for first
mortgage home loans as yet in one
section-the West North Central Sec
ton.
Home buyers and builders are pay
ing over the per cent rate in %
per cent of the cities, above per cent
in only 8 per cent of the cities. In
less than per cent of cities they
pay rate ranging up to per cent
They are paying no more than per
cent in 76 per cent of the cities.
Low Rates in Large Cities.
The larger cities show most general
penetration of lower rates.
In the present survey the associa-
ton for the first time asked its
member boards to report on per-
centage of change up or down as
against year ago in residential rents.
While rents for apartment space
are still only so per cent of the
1925 level, and for single family
dwellings only a little more than
70 per cent of that level in metro
politan centers, substantial degree of
recovery has been made in earning
capacity of real estate.
AS to single-family dwellings, de-
tached and semi-detached, 212 cities
having an, up trend undertook to
measure the change. OF these, SO
cities show the increase as approxi-
mately per cent, 100 cities show it
as approximately 10 per cent, % show
1t at IS per cent, "a show it at 20 per
cent and II show 1t rs per cent or
over. The aggregate showing 10 per
cent or over is thus 83 per cent of
the cities. The aggregate showing a
is per cent increase or over is 80
per cent of the cities.
Only cities still having a down
trend in rents indicated degree of
the decline. The slump ranged all
the way from to 25 per cent and
over. an indication of the degree of
local lag in the recovery movement.
Apartment Rents Rising.
Apartment rents-which, measured
against construction costs, tell the
story of whether new building will
pay its way-show this change:
OF 1877 cities reporting up rates, So
cities show the rise as approximately
8 per cent. 70 cities show it as approx
mately 10 per cent, 35 show it as Is
per cent, l9 show it as 20 per cent, z
show it as 25 per cent or over. Thus
70 per cent of the cities say these rates
have gone up 10 per cent or more, and
S3 per cent, one-third, say they have
advanced IS per cent or more.
This is for heated apartments, in
cluding all dwellings of more than
three-family units having more than
two rooms each, but not including
commercial or apartment hotels.
AS to apartment structures, six cities
still having a down trend Of rents es-
timated how far the sag went. Three
of them had a decrease of approx
mately per cent, but in two it went
rs per cent or over, second measure
of the wide variation between COM
munities in regard to factors of the
real estate recovery movement.
AS to unheated duplexes or fiat
buildings, 162 cities having rent in
creases estimated degree Of increase,
Is cities reporting it approximately S
per cent, 70 give it as 10 per cent, 20
give it as IS per cent, Is cite it as 20
per cent and report it Is per cent
or over. Thus an aggregate of 70 per
cent of the cities show the gain Is 10
per cent or more, and ~ per cent show
1t as Is per cent or more. OF 8 cities
reporting on rent decline in duplexes,
2 cities placing it as approximately S
per cent, at 10 per cent, but 2 at as
mar rent or ovor