Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1959-04-23

NAOA N6oSS " q II ASAiOo AOA
home purchases are available
in greater volume now than
la S t December, down pay
ments requirements h ave
eased, and interest ra tie S
have remained stable, the
National Association of Real
Estates Boards has reported.
These were among the general
conclusions drawn from a sur
vey of the residential mortgage
market for the first quarter of
1859 conducted by NAREB's De-
partnent of Research with the
cooperation of a panel of Real
tors In 225 communities of the
nation. The study was released
by Oliver M. Walker, Washing
ton, D. c., chairman of the Asso-
cations Committee on Real
Estate Economics.
In announcing the survey, Mr..
Walker observed that increased
savings and loan assets, with
higher dividends to depositors,
constitute force for higher
average charges to savings and
loan borrowers. This, In turn,
moves toward less competition
with insurance companies for
placement Of investment funds,
Mr.. Walker said, adding that
with the fuller participation in
the market of these investors,
availability can be expected to
improve even further at possibly
slightly higher rates.
AN unprecedented level of
voluntary savings by individuals,
especially increased deposits in
savings and loan associations ac-
counts, has created an immense
reservoir of lendable funds for
resident ial financing" the
NAREB study observes. 1.-THE
influence is apparent in reports
of loan availability, in common
tary on easing in down pay.
ment requirements, and in sta.
bility Of home mortgage interest
rates.
THE 1858 growth in individual
savings was equal to six cents of
each average income dollar Taft
er taxes) of the nations IT'S mil
lion individuals, compared to
some four and one-half cents
similarly set aside In 1857. This
increase in saving was the great
est since the years 1943-45,
period not at all comparable
since a national emergency and
q shortage Of consumer goods
motivated much of the savings
investment Of that time"
Conventional Mortgage Loans
"A stable supply of invest
ment resources and keen compe-
tition among lenders in many
cities Is prompting an extension
Of term and an agreeable view
toward higher ratio loans, where
borrowers desire Them" the sur
vey reported. This enlargement
Of the conventional market is
providing financing for many
home buyers unable to make IS
per cent or greater down pay
n1ents, or to qualify for a loan
with the monthly installments
Of a Is or 20 year amortization
period" Average interest rates
have held stable.
For new homes, the supply
Of mortgage loan funds was de-
scribed as ample for IS per cent
of the areas, and as moderate
for 10 per cent. These ratios
compare to rs per cent and 81
per cent respectively, reported
last December, and both are
slightly higher than a year ago.
For mortgages on new homes,
slightly more than a third of
the reports showed a prevail.
ing interest rate of 51s per cent;
an equal proportion quoted 6
per cent, and a fifth listed 5%
per cent.
With respect to existin z
homes In good neighborhoods,
the current supply of mortgage
loan funds is classified as ample
for three-quarters of the mar
ket, and as moderate for % per
cent. In December, the COM
parable proportions were 68 and
% per cent. Borrowers seeking
loans for the purchase of these
homes found rates relatively
similar to those characteristic
Of the market In December. Spe-
officially, for % per cent of the
communities, the average rate
was said to be 51z per cent,
while % per cent listed 1t as
5k per cent, and 40 per cent Of
the survey said 1t was 8 per
cent.
FH-Insured Mortgages
(SectiOn 203)
The supply Of investment
capital to meet demands for
FHA-insured loans has increased
notably over the past three
months" the report noted as an
over all observation. though
prices have generally continued
at levels similar to those that
characterized the market at the
close of the year 1885,"