Evening star., 1937-11-06
LOAN ASSOCIATION
VOLUME UPHELD
With Construction Drop,
Units Concentrate on
Home ResaIes.

The savings, building and loan asso-
Citations, by concentrating on loans to
purchase homes already built, kept
their September lending activity above
the 800, 100000 line which they have
maintained since March, despite =
108 per cent shrinkage in residential
construction between August and Sep
tember, which lowered the demand for
construction loans.
This Is the report Of the United
States Building and Loan League.
which shows the estimated loans OF
the institutions at $103,371, 900 for
September and the number of borrow
ers 1880.
Morton Bodflsh. league executive vice
president, said loans for home pur-
chase totaled $36 1894, 100, or $50 per
cent, the largest proportion Of the loan
total they have accounted for since
May. They were q quarter Of q mill
lion dollars larger than in August and
3l,300,000 larger than September q
year ago. Modernisation loans also
amounted to more in September than
In the previous month.
45 Per Cent Of Total.
Meanwhile the total amount of saw
ings and loan financing for all pur-
poses was 80 per cent less than in
August and constituted drop of 10.6
per cent from the volume for Septem-
ber a year ago. Construction loans
showed fall-offs Of $3,000,000 and S.
$4,000, respectively, when compared
with last month and with September
1885. They were still equivalent, how
ever, to As per cent Of the total value
OF all residential contracts awarded in
September, Is measured by the r. w
Dodge Corp. Although savings and
loan construction financing lost o.
per cent between August and Septem-
ber, the value of all residential con-
struction took larger slide, 1913 pei
cent. Thus, Mr.. Bodfish points out
OF the home construction still going
on, savings and loan associations are
financing proportionately more thar
hitherto.
The September loan estimate
brought the total for the third quartz,
up to $323, ,292, 900 for all savings and
loan advances, and the cumulative esti.
mate for the first quarters of the
year to $3.50, TIA, 700. For the first min,
months OF 1887 the estimated volume
was IL per cent above the correspond.
ing total for last year, but for ths
third quarter alone 1886 was ST, 1000.
900 ahead of this year.
Big Gain in Two Years.
THE purchase of homes has quite
apparently made substantial stride,
even while building costs and the bust.
ness recession Of the fall months hav.
been reflected in lethargy about hom.
building" said Mr.. Bodfish. 1.-The con.
dition OF the market for homes, a.
compared with two years ago, Is re.
fiected in contrast of the savings ane
loan purchase loans then and now
26.771 900 two years ago and $50, 1884,.
100 this September, . gain Of SO PEI
cent by volume. The number Of pur.
chase loans per month likewise in,
creased in these two years from II, ,00l
TO 14,500."
The analysis Of September loans &C
eording to purpose and the per cen
of the total loans on each account fol
lows:
Estimated September Loan
Made BY All Associations
Purpose. in United States.
New construction ------- $29. sos, ,0ol
Repair and moderniAtion- 7,o23, 60,
Home purchase -------- 36,3e4, ,10t
Refinancing ------------ 20,844,8 ,80l
Other purposes ------ $500, ,10t
Total emo o1y nnx