Evening star., 1938-05-14
BUILDING LOANS
REACH 1888 HIGH
Associations Report They
Top Previous Month by
35 Per Cent.

Loans granted by savings, building
and loan associations during March
reached 1888 high when they topped
the total for the previous month Of this
year by IS per cent. According to the
estimates of the loan volume by the
United States Building and Loan
League for associations throughout the
country, the loans granted for the
construction of new homes showed the
most promising progress in the record
Of the convalescence of the loan in
dustry from the country's slack epi-
demic. Loans for new construction
leaped to "a per cent gain in March.
Total loans granted during March
were estimated at $86,8lO 500, as COM
pared with the $66, sol 300 for Febru-
ary, according to E. C. Baltz, WASH
ington, president of the league. Loans
for the construction of new homes to-
tailed $23,887. 100, as compared with
$177l9.000 for February.
This group Of loans was not the only
one to show gains for March, however,
as progress was noted all down the line.
Money borrowed for repair and mod
ernization showed an per cent gain,
the loans standing at $5,727,2O0 for
March, as against $4,354,2OO for Feb
ruary.
Other Loans Up.
Loans granted for the purchase of
homes already constructed also showed
an increase Of SO per cent, going from
$20,ll8,700 to $26, ,770,700. A 27 per
cent increase in money borrowed for
the reflnancing of homes was indi-
Gated when it was noted that the
March figures were $4,000, 300, as
compared with February's SIS, ,76O, 400.
Loans for the first quarter of 1898,
however, were 81 per cent under
those for the first quarter of 1887,
those for 1888 were $215,867, 500, as
compared with 1852, 2,872, ,000-a loss
of s45,004,500 for the first quarter Of
this year.
Repair and modernization loans for
the first quarter Of this year were
slightly in advance of those granted
for the same purpose the first quarter
OF 1887, Sl4,l30.500 as against $14,-
10l, 900. These loans were the only
ones which surpassed those for the
first quarter of 1887, however, with
the volume as whole rejecting the
general business decline
Confidence Seen Returning.
''There is an indication drawn from
the March loan figures that the peo-
pies confidence is returning sufi-
ciently to encourage them to build a
few more homes" Mr.. Baltz COM
mented. In breaking down the loan
figures to determine just how many
people started building new homes in
March we find 1876 families doing so
with savings, building and loan asso-
ciation money. This not only means
that there will be an addition to the
list of home owners in the country but
also that more persons are receiving
employment through the construction
OF these new homes. It is also noted
by the total figures that 10,860 fam
lilies borrowed money to complete the
purchase OF homes already construct
ed. Counting also those who bor-
rowed to refinance their homes or to
make repairs and modernize and for
miscellaneous purposes Al ,467 individ-
ual families took steps toward retain
ing those homes as good investments
toward present and future security"
The leagues analysis of estimated
loans made by all associations in the
United States in March follows:
New construction --- $23,s87, 100
Repair and modernization 5,727,20O
Purchase e- 26,770, 700
Refinancing ----- 20,006 300
Other purposes ------- 10,419,300
$s6.s1o,eoo