Evening star., 1937-02-20
HOME MORTGAGE
RATES SURVEYED
Interest Cost of 91R% of
Cities Falls Between
5 and $50.

The interest rate most common
throughout the country for first
mortgages on new, moderately priced
homes Is included in special in
quiry supplementing the twenty
eighth semi-annual survey of the
real estate market made by the Ma
tional Association of Real Estate
Boards.
Data released today by the asso-
citation also included findings Of an
other special inquiry on the amount
Of change that has taken place in
the last year in the cost of residential
space. The special inquiries, like the
semi-annual survey, covered $50
cities in all sections of the country.
Comments quoted from the indi-
vidual cities indicate the close rela-
tionship between mortgage terms
available in community. degree OF
return to normal rents and outlook of
the. community for new home build
ing.
Some Give Several Rates.
Of the $50 cities reporting on the
interest rate at which first mortgage
loans on new. moderately priced homes
are now most commonly being made
some named a single rate, some named
range of two or three rates. The
$50 cities replying thus gave a total
Of 348 replies
In ell2 per cent of the cities the
rate or rates cited as most common
fall in part or entirely within the
range per cent, 512 per cent, 6
per cent. The proportion coming
within this range is decidedly greater
than in any of the associations previ-
Gus semi-annual surveys. (Six months
ago only "a per cent of the cities
came in part or wholly within this
range) OF the cities whose prevail
ing rate is within the to per cent
range, 20 cities bracketed all three
of these rates as common; 18 cities
paired 515 per cent and per cent
as both common.
AS noted in an earlier statement
on the general survey findings, per
cent is still most frequently reported
as the ordinary rate. 1t is checked
by 81 per cent Of the cities Gn l5o
of the 348 replies). A 5la per cent
rate is checked by 81 per cent Of the
cities. A S per cent rate is checked
by 30 per cent of the cities GA out Of
the 348 replies). Two small cities,
one in New England and one in the
West North Central section, report
rates ranging down to Az per cent
One small city in the East North
Central section shows rates ranging
down to per cent and another rates
ranging to less than A per cent as
common A total of 3o4 out OF the
348 replies check a rate of not more
than per cent.
21 Above Per Cent.
However, 81 cities (s1a per cent OF
the total number replying report
their entire range of interest rates
common for todays home mortgages
as above 6 per- cent. (Six months
ago twice as high a percentage SO
reported} The cities whose rate
range is still entirely above 6 per
cent are all Of them under 100000
population. Half Of them are under
$4,000 in population. Five are in the
South Atlantic States, two in the
West North Central section, three in
the East North Central section, eight
In the West South Central section,
two in the mountain section, one in
the Pacific section. A 7 per cent rate
is still checked as common by S
per cent of the cities, TX per cent
rate by per cent of the cities, a
range up to per cent by two cities.
One city reports a rate ranging over
81 per cent as the. common actual
present rate.
Meantime, as to mortgage rates
available today on all types of prop
erty. Earle G. Krumrine, Chicago,
new president of the associations s
National Mortgage Board, quotes to-
tails of mortgages filed in Cook Coun-
ty, III. Chicago metropolitan area),
as Illustrating the degree to which
rates on preferred types Of property
are lower than the above nationally
reported schedule of "commonest"
home mortgage rates.
For 1885," Mr.. Krumrine says, "the
recorders office reports S33, ,41O,867 in
mortgages and trust deeds filed for
record at S per cent interest, as COM
pared with $26,138,357 filed at 6 per
cent interest. In other words, there
were s7,272,510 more filed at 5 per
cent than at per cent. In addi-
tion to this there were $10,S4s, ,270
filed at Az per cent, ss,345,27S at
61a per cent, 266 mortgages totaling
$3,324.871 at per cent and 112 mort
cages totaling S777,375 fled at per
cent. There were only 81 mortgages
filed at 61z per cent and 80 at Z per
cent.
Townships Give Indication.
"The township totals give the clear
est indication of what kind of mort
cages drew per cent as against those
at per cent. In the area where the
older and poorer improvements are
located there were 582 mortgages re-
corded at per cent and l,107 at 9
per cent, ratio of two to one. On