Evening star., 1939-09-23
Mortgage-Insurance
Applications Still
Rising, F. H. A. Says
Volume Holds Up
During Second Week
Of War Abroad

The volume of home mortgage
insurance applications received by
F.. H. A. during the second week OF
the European conflict continued to
rise from the summer lull, Federal
Housing Administrator Stewart Nc
Donald announced today.
"While none of us can attempt to
make any accurate predictions of the
long-term effects of the European
war upon residential construction in
this country" Mr.. Mcdonald said,
at seems reasonable to anticipate
the usual seasonal increase in small
home building permits as we'll as
F. H. A. mortgage insurance appli-
cations in September and October"
Small home mortgages selected for
appraisal during the week ended
September 16 amounted to $22,514,-
600, Mr.. Mcdonald said. This COM
pared with $17,311, 900 in the pre-
ceding week, when the Labor Day
holiday occurred, and with $22, 1885,
600 in the week ended September 2.
These figures include mortgages on
both new and existing homes.
Volume Ahead Of 1898.
Mr.. Mcdonald pointed out that
the volume of applications on homes
to be built under F. H. A. inspection
was still running well ahead of 1888,
as in every preceding week this year,
and that the percentage of new con-
struction to the total number of ap-
plications was 666 per cent last
week. The total volume of mort
cages selected for appraisal, because
of a decline in those on existing
homes, is running approximately 10
per cent below last year at this time.
"A seasonal rise in residential
building applications ordinarily fol-
lows summer dip in July and the
first two weeks of August" Mr.. Nc
Donald said. This generally is ex-
pected to approach but not to exceed
the somewhat higher levels of the
Spring building season.
Thus far this year fairly normal
pattern has been followed, with a
spring peak in our figures substan-
TALLY above that of year ago, when
more liberal financing terms were
just beginning to be effective. This
spring peak was followed by a de-
cline during the summer, and the
past few weeks have shown meas
urable gain in the volume Of new
construction applications.
Below Spring Peak.
"In the week ended September 16
we selected exactly 5000 mortgages
for appraisal of which 1928 repre-
sented homes to be built under
F. H. A. inspection. This compared
with 3,205 applications on homes to
be built in the same week last year,
and was somewhat below this years
spring peak. In the same week 2,504
new homes were actually started
under F.. H. A. inspection, compared
with 1000 the year before.
The volume of modernization
loans reported for insurance totaled
$3,873,028 in the week ended Sep
tember 16, compared with s1,871,614
In the preceding week and $4,816,619
In the corresponding week of 1898.
This year an insurance premium is
being paid by lending institutions on
loans of this type, whereas a year
ago no such premium was in effect
under Title I.
1T is gratifying that lenders are
going ahead making these loans in
such substantial volume and that
this part of the F. H. AS operations
also may now become self-sustain-
ing, along with home mortgage in
Surance under other sections of the
act. These figures on modernization
loans do not yet reflect the effects
OF the world crisis since institutions
have a month to report them"