Evening star., 1960-03-25

financing, put this is oue as m
mand as any other factor
they agreed in a panel discus
sion of the area mortgage out
look at q general membership
meeting of the Washington
Real Estate Board at the Stat
Ter Hilton last night.
While a number Of executives
expressed extremely cautious
opinions that under certain
conditions interest rates could
be lower by next fall, C. Armel
Nutter, president of the Ma
tional Association Of Real
Estate Boards, a panel mem
Der. led OF with a prediction
that the present easing in rates
and the demand-supply situa-
ton represents only q tenn
porary lull.
Sees 5-Year Pinch
.'I think there will be q
shortage Of savings for the
next five years. he said. How
ever, If Congress should see 1T
to change the present law so
that Government financing
viii not be confined to the
short-term market. more funds
VIII be available and rates will
not 60 UP as much. he declared.
c. Bayne Marbury, treasurer
Of Acacia Mutual Life Insur-
af1ce Co. stressed the different
factors working in the short
term and long-term money
markets, but he predicted that
rates in both Of these sectors
would be higher by next fall.
He also expressed a conviction
that the present easing is only
temporary.
w. Franklin Morrison, ex-
ecutive vice president Of First
Federal Savings and Loan AS
sociation, declined to predict,
but he cautioned that If de-
n1and for loans should run be-
hind the supply of money it
would be some time before in
terest rates would be adjusted
to the new situation.
Justin D. Bowersock, execu-
tive vice president Of Union
Trust Co. and president Of the
District Bankers Association,
pointed out that 1860 still is
expected to be a good year, but
not the boom year anticipated
earlier. Demand for loans may
not be as great as expected and
IFS still greater lag appears in
demand for automobiles and
other products, interest rates
could go down slightly, he ven-
tured.
Predicts Lower Rates
Carey Winston. president Of
Carey Winston Co. and a past
president Of the Real Estate
Board, predicted q softening in
mortgage market interest rates,
both in immediate and future
commitments by September.
The decline could amount to
as much as one-fourth of one
per cent. he said.
The first signs Of spring have
appeared in the Washington
mortgage market, Mr.. Winston
added. In a survey of sources
yesterday he said he found
more money than loan applica-
tions.'
There is a good supply Of
money in the FILA insured
mortgage market with prices
ranging from 81 to 81 depend
ing on location of the property.
amount Of the down payment,
credit Of the borrower and
many other factors, he said.
Funds also are ample in the
VA insured mortgage market
with prices ranging between
80 and 90, he added.
In answer to a question as
whether savings and loan asso-
Citations sometimes get more
savings than they can lend out.
Mr.. Morrison said loan demand
has slowed up sharply in recent
months.
While an association may get
plenty Of money. it may find its
loan market has diminished
greatly, he added.
Following Mr.. Nutter'S COM
ment that money Is tending to
flow out Of States which have
laws limiting the legal interest
rate to 8 per cent and going
to States where the limit is
higher, the panels attention
turned to legal rates Of Vir-
ginia, the District and Mary
land.
Mr.. Winston said there
seemed to be little difficulty in
working out rates on Virginia
and District mortgages. but that
the situation remained cloudy
in Maryland due to the lack Of
q court decision.
The legal limit is 6 per cent
in both nearby. States but can
be as high as 8 per cent on
agreement Of both parties in
the District.
Looks to Pension Funds
In answer to another ques-
ton, Mr.. Winston said pension
funds are growing faster than
any other single source for
savings and that they are turn
ing more and more to the
mortgage field for investment.
Pension funds are the great
white hope for mortgage needs,
1aa eail