Evening star., 1939-06-03
Mcdonald Predicts
Active Summer
Building Season
Reports New Record
In Nay for Starting
Construction

Construction was begun under
r. H. A. inspection on more than
800 new single-family homes every
working day on the average during
May, Federal Housing Administrator
Stewart Mcdonald announced today
On the basis of this new record for
starting construction. together with
recent figures on F. H. A. insurance
volume, Mr.. Mcdonald predicted an
active late spring and early sum-
mer building season.
Applications for insurance of
small home mortgages have con-
tinued to reach us in a consistent
volume each week for the last three
months, indicating that residential
construction will be maintained dur
ing coming weeks at a satisfactory
pace" Mr.. Mcdonald said.
During the week ended May 27,"
the administrator said, construction
was started under F. H. A. inspec-
ton on BIB new small, single-fam-
lily homes, the largest number for
any similar period in the history of
the F. H. A. An average of more
than 5000 homes was started each
week during May. About 10000
sfngle-family homes will have gone
under construction under F. H. A.
inspection during the month.
During the first four weeks of
May applications for small home
mortgage insurance averaged more
fS1or eCS mn mn 1
per cent ahead of the 1888 month.
Level Steady Last Year.
"As matter of fact the volume
OF small home mortgage insurance
applications for the full month of
May probably will exceed April,
when the total was more than S105,-
900 900. Last year, it will be re-
called, our applications for small
home mortgage insurance main
tanned steady level from the first
week in March through October,
with no seasonal decline apparent
during the summer months.
1T is interesting to note also that
there has been a steady increase
during the last three months in
the weekly volume of small home
mortgages actually accepted for in
surance. This upward trend cul-
minated IN a volume of more than
s18000,000 for the week ended Nav
n, the highest for the year. The
total volume of small home mort
cages accepted in May will surpass
any month on our records, with the
possible exception of June, 1888. and
will exceed $70,0O0,0OO. This rising
volume of acceptances indicates that
houses constructed by commercial
builders for later sale are finding a
good market and are being financed
through the F. H. AS mutual mort
gage insurance system.
AT this same time loans are be-
ing insured by the F. H. A. in an
unusually heavy volume for the re-
pair and modernization of proper
ties. During the first four weeks
Of May these loans exceeded IS ,0O0,-
600 each week and the total for the
month will approximate $4,000 900,
the highest May on record and close
to the largest monthly amount since
re-enactment of the property i'm
provements credit plan in February,
1888. Since these loans average
only about $500 apiece, it is appar-
ent that more than 10000 home
owners and small business men each
week are achieving better living and
working conditions through use of
this form of credit.
Work for Thousands Seen.
I'VE look forward to an active
summer season for modernizat ton
and repair of properties, and we ex-
pect that this property improvement
program will furnish work and
wages to thousands in the building
trades and will stimulate activity
IN numerous branches of the con-
struction industry"
Mr.. Mcdonald cited recent figures
on residential building permits as
confirmation of the accuracy of F.
H. A. small home mortgage insur-
ance figures in indicating the trend
OF building for the near future. He
pointed out that the volume of resi-
dentiaL construction for which per-
mits were issued during April was
4S per cent above the corresponding
month OF 1898 and that the largest
gains were made throughout the
Middle Western section of the coun-
try. He recalled that in the preced-
ing month of March the F. H. AS
hgures showed a gain over the 1888
period OF 20 per cent in applications
for small home mortgage insurance
and Of So per cent in acceptances. a
rise strikingly comparable to the
year-to-year increase in actual per-
mits granted In the following month
OF April. He also recalled that the
best gains in F. H. AS business this
year have also been in the Middle