Evening star., 1937-01-09
NOVEMBER LOANS.
TOTAL $1OO,111,0lD
Building Loan Associations
Report Record Maintained
Since April.

Total disbursements for home loans
by the savings, building and loan as
sociations in November upheld the
record of more than S100,000.00 a
month which has been maintained by
these institutions since April, the
United States Building and Loan
League said today. The estimate for
November, based on reports from as
sociations with more than 40 per
cent of the total resources. shows the
November loans at Sl00,111 900.
Following seasonal trend the loans
were % per cent lower than October
as compared with "a per cent de-
cline between the same two months of
1885.
Morton Bodfsh. executive vice
president of the league. in analysing
the November data points out that
the volume this year was % per cent
larger than that for November, 1885,
and that the disbursements for con-
struction loans showed 38 per cent
increase over those for this purpose
In November last year.
Borne Out by Statistics.
THE seasonal factor in the decline
from October to November is borne
out when the statistics are reviewed
in detail state by state" said Bodflsh.
I'm the northern sections there are
definite decreases during the period,
while in the southern sections of the
country, where building goes on prac-
tically the year round, much the
same level of loan volume as in Octo-
per was maintained. The variation
between the sections was noticeable
not only in the volume of construction
loans but also in that of home pur-
chase loans, which leads US to believe
that In the geographical areas where
Winter lasts for several months there
Is q let-up in home purchase which
can be traced directly to weather
conditions.
For the first IL months in 1885
the associations appear to have dis
bursed about s256 100000 for the
financing of new-home construction.
This figure represents about SO per
cent of the volume of residential
construction contract awards reported
by the F. W. Dodge Corp. for the same
period. Since the construction loans
Of the association range from so to IS
per cent of the total cost of con-
struction, in most cases, probably half
Of the home construction projects in
the country derived financing from the
funds of thrift and home financing
institutions. In November the per-
centage Of all association loans going
into new construction financing was
294. the third highest percentage re-
ported for any one month of 1886.
September High Month.
September was the high month
IN percentage of construction loans
to total disbursements allocating 3015
per cent for this purpose. The sea-
sonal decline of % per cent in total
loans contrasts with the much smaller
fall-off when construction loans are
considered by themselves. Between
October and November there was only
IS per cent decline in this type of
financing"
Mr.. Bodflsh said that approximately
$4,000 families received loans from
the associations in November and
that the average size of the loan
therefore continued to be around 81
400, the average which has been
generally characteristic Of association
loans since their expanded activity
began to be evident in April.
An analysis Of the November loans
by savings. building and loan associa-
tions in the United States according
to purpose follows:
Per cent Of
Purpose of loans. total,
New construction - S29, ,426,00 294
Repair and modern
iZation --. $3.50 900 SO
Home purchase------2 29,254. 900 292
Refinancing ---- 24.360,000 243
Other purposes---- 10,152,000 1912