Evening star., 1939-08-12
FIJI. A. Applications
Show Gain in Home
Construction
Mortgages Selected for
Appraisal Increase
10 Pct. During July

New home construction, as re-
fiected in applications for Federal
Housing Administration mortgage
insurance, showed continued gains
during July over 1898, Administra-
tor Stewart Mcdonald announced
today.
During the month 12,649 mort
cages totallng S60,747 ,320 were Sc
lected for appraisal covering homes
to be built under F. H. A. inspection,
an increase OF 10 per cent over the
1l,403 mortgages for 55087, ,470 IN
this category IN July. 1893.
The total OF small home mort
cages selected for appraisal during
July was 18,462, in the amount OF
$84 ,482, ,450, decrease OF IL per
cent from the 20,883 mortgages tor
$94175.437 selected in July, 1888.
The decrease was caused by a drop
OF almost 40 per cent in the volume
q mortgages selected for appraisal
Involving existing construction.
$500 Started Weekly.
The number OF new homes &C
tually started under F. H. A. in
spection in July continued at the
same high level as in June, averag-
Ing about $500 weekly including the
week of July 4. During July, 1888,
an average OF 1000 homes was
started weekly under F. H. A. in
spection. These figures refer to
small, single-tamily homes and do
mt ipn1t11n l.
ing projects.
Mr.. Mcdonald said mortgage IN
surance applications during July
were lower than the preceding
months chiefly as a result of the
normal seasonal lull. A year ago,
he pointed out, the home construc-
ton program was late in getting
under way and then maintained a
stable level OF activity throughout
the summer without any seasonal
declines. This years new building,
however, is still running ahead OF
last year.
Property improvement and mod
ernization loans insured by the F..
H. A. were reported during the
month in the number of $3.50,
amounting to S26,432,956. This
compares with 34,605, amounting to
$l6,637 ,630. reported in July, 1888,
Business reported during July rep
resented largely loans made during
June, the last month Of operation
under the old plan whereby leaders
paid no premium for their lnsur-
ance.
Increases Reported.
In the first seven months OF this
year small home mortgages selected
for appraisal by the F. H A. involv-
ing homes to be constructed
amounted to s471 900, 900. compared
with s298,5O0000 in the 1888 period.
an increase OF So per cent. Total
mortgages selected for appraisal
amounted to S6.5OO,o 900, compared
with s549, 100000, an increase of rs
per cent.
Mortgages accepted tor insurance
during the first seven months OF
1889 involving homes to be con-
structed under F.. H. A. inspection
amounted to $287 100000, compared
with Sl74,OOO,O 900 in the 1888 period,
an increase OF IS per cent. Total
mortgages accepted for insurance
during the first seven months OF
1889 amounted to 2O,449,O 900. COM
pared with s337, 1872 900 in the 1888
period. an increase of "a per cent.
OF the mortgages accepted by the
F. H. A. for insurance this year, over
10 per cent covered newly con-
structed homes and more than 80
per cent of these were inspected by
the F. H. A. during the course OF
construction.
Mortgages accepted for insurance
during July totaled s52,6O3,1OO, a
decrease of 13 per cent from the 1888
month and of 36 per cent from June,
when a new high record was estap-
lshed.