Evening star., 1937-07-24
6PCT. MORTGAGE
RATE PREVALENT
Survey Finds 4I2 Per Cent
Lowest, With Range
Up to 8.


on new moderately priced homes are
now most commonly being made?
This question, on one OF the Key
factors affecting new home buying
and home building, was asked by the
National Association Of Real Estate
Boards in its twenty ninth semi
annual survey of the real estate mar
ket, last section of which was released
today
OF 245 cities from which confiden-
tial reports on this question were
made to the association by its men,
Der real estate boards, the largest
number still check per cent as
their commoneSt rate for new mort
cages Of this type. This rate, COM
nonest in 50 per cent of the cities,
has held this position steadily through
the recovery years, as shown by like
inquiries conducted by the association
seml-annually since February, 1885.
But 1875 per cent of all the cities,
In naming the rate at which their
new home loans are being made,
gave no figure so low as 6 per cent as
common. In other words their entire
range was above per cent. OF the
245 cities, 9 per cent stated that their
new home loans are most commonly
being made at per cent or some
higher rate But only l per cent Of
the cities gave their range as up to
per cent.
Az Per Cent Lowest.
On the other hand, first home mort
cages made today commonly carry
an interest rate under 6 per cent in
43 per cent of all the cities replying.
The range of rates now common runs
as low as 4l2 per cent in per cent
of these cities replying. No city re-
ports a range lower than A. per cent,
although previous surveys have shown
4 per cent rate existing in few
cities. No city now names rate
higher than per cent as common.
The study shows decline in interest
rates as against like survey OF
wear ago. but high rate spread some
what more general than was shown
six months ago A year ago costs OF
over per cent we're shown IN 20 per
cent of the cities and range under
cities, But six months ago only 8l2
per cent of the cities were IN the group
whose entire range of interest rates
for first home mortgages was above
per cent.
Decided geographical variations are
found in the reports.
Most notable variation. however is
between larger and smaller cities.
Cities citing an interest rate ranging
above 6l2 per cent as common are in
all cases cities of under 100000 popu-
lation.
In all, 70 per cent of the cities have
as their commonest interest rate
figure somewhere in the bracket 6 per
cent to per cent inclusive
Southern Rates Generally Higher.
No city of the Central Atlantic
region or of the New England section
shows any rate higher than per cent
as common Most frequent reports
of the higher rates come from the
South Central section and the South
east section.
Residential rents, recognized as hav-
ing made an advance in practically
portant in the general pattern of re-
covery as measuring restored demand
for existing structures, without which
there could be no pull toward new
construction. Significant as a barom-
eter of the supply demand ratio in
housing space, they continue to show
q growing divergence as between sin
gle-family houses and apartment space
Using as a yardstick the rates pre-
vailing in the year 1926, the monthly
index prepared for the association
from rents advertised in typical metro
politan communities from coast to
coast shows apartment space as hav-
ing regained only 80 per cent of its
total long-term depression loss, its low
having continued through the entire
year 1884. On the other hand. single
family dwellings, have regained 90 per
cent of their long term loss. Their
low was reached at the end of 1898,
and their rate of recovery has been
consistently the more rapid. Apart
ment rates are now at about IS per
cent of the level prevailing in 1926,
though single-family dwellings are
back at about 81 per cent of their
1926 levels in the cities covered by the
index.
10 Per Cent Advance Common.
AS to advance over the last IL
months in Individual cities, an esti-
mate is made for 224 cities by their
local real estate boards in the asso-
CATIONS semi-annual market survey.
Degree Of increase they most COM
monty report is 10 per cent advance
over last year. both for apartments and
Tor detached houses. For heated
apartments, "A per cent of the cities
show the rise as 10 per cent over last
year. but one-quarter of all the cities
GA per cent? show only per cent
rise over last years level: II per cent
OF the cities show a rise of Is per cent.
For sinele-family dwellings Cunheat-
ed, 43 per cent of the cities show the
advance as 10 per cent over last year;
per cent of the cities show the ad-
vance as only S per cent over last year,
but 20 per cent of the cities show rates
up Is per cent the largest comparative
gains being, very notably. in cities
which one year ago were more than
normally retarded in respect to their
general business recovery.
Detailed studies recently set up bv
the United States Department of La