Evening star., 1936-06-06
PEAK IS REACHED
IN HOME LOANS
Figures Show Associations
Provided $25, ,000,0 900
in April.

Placing S25,0O0,O00 at the disposal
Of families building new homes in
April, the savings, building and loan
associations of the country reached
the highest point in six months in
their total volume of disbursements
for home buying, building, modern
iZation and reflnancing.
The statistics come from the United
States Building and Loan League,
which reports that April loans for all
purposes were $1os, 1891 900 to $4,000
families, the highest volume Of credit
extended since october. Construction
loans in April were SO per cent higher
than in March. Morton Bodfish.
executive vice president of the league,
shows the influence of this expand
ing mortgage business by the associa-
tions upon the employment situation,
indicating that United States Depart
per cent increase in employment in
building construction from March to
April and a 20.3 per cent increase in
pay rolls for the same period. The
data on employment in the construc-
ton industry refer only to privately
financed activities and in this field
residential building accounts for A per
cent of the April contracts awarded.
Increase in March.
Referring to the total volume Of
lending by the associations during
April, Bodfish indicates that a sea-
sonal trend was followed, since they
were up 35 per cent from March.
The fourth-month activity brought
total disbursements on home mort
gage security since the first Of the
year to $325 100000, the largest block
of home financing reported by any
single group Of financial institutions
or by any group using a particular
plan for home financing, He points
out that these again show the in
creasing strength and ability of flnan-
cial institutions to make loans on the
borrowers capacity and security with
out outside aid.
Comparisons with the record of the
associations in April, 1885, also re-
vealed important gains and unfailing
signs of better conditions with regard
to both available mortgage money
and the demand for it. Total loans
were 81 per cent higher this April
than last and % per cent OF the
total volume this year went into
construction loans, as compared with
20 per cent last year.
Confrihlife IA Emnlnynnent
Between March and April there
was a conspicuous gain in the number
and volume of association loans for
modernization and repair, rejecting,
of course, the Spring season." said
Bodfsh. Construction loans and re-
pair financing accounted for nearly
a third of the total disbursement by
the associations during April. For
the previous six months their part OF
the total savings, building and loan
lending was little more than 20 per
cent. The growing importance of
these two types of loans in the asso-
citation programs hinges about the
fact that they are direct contributors
to employment"
tllC improvement al 4GchA
estate sales, the loans made by the
associations for home buying give
important evidence. They represent
81 per cent of the April volume of
loans, as compared with only 1886
per cent for the previous six-month
period.
Savings. building and loan asso-
Citations are now lending funds at
rate which equals their average
monthly performance in 1928, the
year that America began to tackle
her previous housing shortage in
earnest" Bodflsh continued. 1T is
likely that this years performances
will be referred to in the future as the
beginning of the real attack by pri-
vate enterprise upon the growing
scarcity of houses. Just as the COM
n1unity thrift and home financing in
stitutions played an increasingly i'm
portant part in meeting the other
need they are prepared today to ex-
pand their activities with the demand
which arises"
A breakdown of the April loans by
the associations according to purpose
follows:
Purpose of Loans. Dollar Vol.
New construction 24,849, 900
Repair and
modernization ------ 1858, 900
Refinancing ---- 34,34e, 900
Purchase ----- 30,o76, 900
Other purposes --- 11,749,o00
Total ---------$1os. sci 900