Evening Star Newspaper, October 19, 1929, Page 14

MORTGAGE RATES SHOWING INCREASE Commercial ~ Loans Also Higher During 12 Months Ending Last July. ‘The average rate of interest on first mortgages for the United States as a ‘whole 0.04 per cent from July, 1828, to July, 1929, whereas the average rate on commercial loans increased 0.19 per cent, while thé rate ‘of interest on second mortgages for the United States as a whole remained stationary, accord- ing to a report received by the Na- tional Association of Real Estate Boards from 85 executive " councilors of its mortgagé and finance division. Mort- gage councilors in 139 cities were ai pointed some months ago by the divi- sion to keep the association informed as to mortgage conditions in various localities. Accord to replies received from the local executive councilors of the divi- sion, the average rates on commercial loans from 1928 to 1929 advanced near- ly one-fifth of 1 per cent and the aver- age interest rate on first mortgages has increased only one twenty-fifth of 1 T cent, The fact should not be over- ked, however, that the bare interest rate on mortgages does Rot cepresent the actual cost of first and second mortgage money, because it does not include commissions and discounts, the amounts and fluctuations of which were not included in this inquiry. The re- port states: . Report's Statement. “It is interesting to note in the report that from July, 1928, to July, 1929, the average rediscount rates for the 12 Fed- eral Reserve banks in the United States increased from 4.71 per cent to 5 per cent, or an average increase of 0.29 por cent, and that during the same year the monthly average interest iaie for renewals on call loans increased from 6.05 in July, 1928, to 9.23 per cent in 1929, or an increase of 3.18 per cent. “The fact that the average iute of interest on second mortgages has re- mained practically stationary is not surprising, because the majority of re- plies stated that the rate of interest charged on second mortgages is the Jegal rate and consequently there is little or no fluctuation in the actual rate of interest charged on second mortgages most communities. Changes in the cost of second mortgage . where youll PROUD 1o Live/ [N CHEVY CHASE GARDENS/ W ashington's foremost home development, you need have no qualms when entertaining friends or visitors,—~a wonderful approach--out Wisconsin Avenue---and an envircnment of Beautiful De- tached Homes (over 80 already occupied) assures you of a residence of distinction---where you may entertain with pride in your own lovely hom THE EVENING BSTAR, WASHINGTON, D. C, 1929 CONSTRUCTION D BY ALLIE H. GR iy, O W Residence at 3503 Fulton street, in Massachusetts Avenue Heights, which has been acquired by the mew owner from P. J. Neft through the agency of Boss & Phelps. It is of the central hall, colonial type and contains four bedrooms and ! three baths, in addition to a clubroom and other provisions. money due to fluctuations in commis- sions and discounts are not shown in the report because these were not in- cluded in the inquiries. “Out of 83 replies received, 30 stated that the demand for mortgage invest- ment securities is the same this year as it was a year ago, 29 replied that it was less and 24 reported & greater demand. “From the replies received to the question on the demand for mortgage investment securities grouped according to geographic sections of the United States and sizes of cities, it is noted that the greater decline in the demand for mortgage investment securities took place in the larger cities, whereas the greater increase in demand took place in smaller cities. Out of the 9 answers received from citles of 500,000 or more, 6 reported & smaller demand and only 2 reported a greater demand, whereas in cities under 25,000, out of a total of 26 replies, 8 reported a greater demand, whereas 5 reported less. ““The reason given most frequently as the cause of the decline in the demand for mortgage investment securities was the great volume of activity on the stock market. with its large speculative opportunitics for gains has attracted an enormous volume of speculative money which might otherwise have been available for consumption expenditures, it is impos- sible to estimate the extent to which this type of investment has made in- roads upon the funds ordinarily avail- able for more congervative longer term investments in real estate, although the effect may be appreciable. “The fact that the average rate of interest on first mortgages during the past year increased only one-fifth as much as the average interest rate on commercial loans would appear to indi~ cate a relatively greater money supply 6300 STRATFORD ROAD ideal surroundings! While the stock market | available for first mortgage invest- ments thhn there was for commercial loans. The policy of insurance com- panies and other large investors who either by law or by preference choose real estate investments creates an enor- mous fund of money constantly seeking investment in real estate. When to this large fund are added the sums which many individual investors prefer to put into real estate, rather than into more speculative investments, the aggregate volume of money seeking comparatively conservative investments in real estate Is enormous. Undoubted- 1y this is the chief explanation for the failure of the average interest rate on first mortgages to keep pace with the rediscount rates of the Federal Reserve Banks or the interest rate on call loans, o N Educational pictures are being shown for prisoners in the Vienna, Austria, Criminal Court. in LESS THAN IN 1328 Contractors’ Chart Shows Jobs 7 Points Below Index Level During September. ‘The volume of construction job tivities during September as measure by shipments of construction material rose 20 Kolnh above the previous month, although remaining 7 points below the index level for September last year, ac- cording to a statistical study just com- pleted by the Associated General Con- tractors of America. The maintenance of construction a tivitles during 1929 to a level approxi mately equal with performance last year checks closely with such employment data as is available, It does not, how- ever, check with cumulative total of contract awards for the first eight months of this year, which show a de- cline, according to the F. W. Dodge Cc;rzm figures, of approximately 9 per cent. The maintenance of job activities at SATURDAY, OCTOBER 19, 1929. rates higher than the volume of eon- tract awards would seem to indicate, ic accounted for by the contractors’ asso- clation through the fact that greater speed is being shown on contracts under way. Because of improved methods, more efficient machinery and higher ef- ficlency of labor, the reserve supply of uncompleted contracts is being eaten into faster than in previous years. Eventually, it is pointed out, there ship between volume of shipments of construction material and the volume of contract awards. It is expected that job activities will either decline to the comparative level of contract awards during the next few months or that contract awards will increase in an amount sufficlent to maintain the rela- tionship with activities. BUILDING INCREASES. Baltimore Home Construction Gains 20 Per Cent in 1920. BALTIMORE, October 19.—An in- crease of 20 per cent is shown in home building in Baltimore the first nine months of this year, compared to the corresponding period in 1928, according to H. Findlay French, director of the industrial bureau of the real estate board. The peak of dwelling construction was in 1925, but from then to 1928 it continued to decline until the pres- ent rise began. will be a readjustment of the relation- | | | REAL ESTATE. Jerman Buys Home. B. D. Jerman of the B. D. Jerman Auto Service Co. has purchased the eight-room English ‘dwell at 1551 Porty-fourth m in h:fi. 1t is announced by Waverley Taylor, Inc., the builder. 409 Concord Ave. N.W. A Real Bargain at $7,950 It is seldom that you can get a nice six-room house with a built-in bath and shower, a concrete front porch and double back porches at this price in Marietta Park. This house has copper screens, hot-water heat and is metal weather stripped. If you want a real house for your money, be sure to see this one. Open Sunday from HOOKER Nat’l. Press Bldg. 10 AM. to 6 P.M. & JACOB Met. 2663 Drive ant Fifth Kt ta Concord Longfellow and Madison Streets.) ORTUNES have been paid for paintings far less alluring than the October-glorified woodlands of HILLS LIGO PARK Individualized homes in this select com- munity cost $9,750 to $12,900—Every home the heart of a small wooded estate—every home offers natural beauties and recreational advantages usually denied the city residence costing forty to sixty thousand dollars Homes with beautiful ap- pointments, hand somely de- signed, and built of brick and stone in pleasing contrasts are now open for inspection at our SPECIAL FALLSHOWING OUR PRICES AND TERMS will surprise 2 e THEY ARE THE LOWEST Wasidrigton A cheery Log Fireplace in a 15x28-foot living room awaits crackling logs and downy easy chairs. At its feet the sparkling waters of Sligo Creek reflect the The attractive en- e ‘glories of Flaming Autumn in colorful panorama. trance to Washing- ton’s latest and most desirable home com- munity. Come out and critically examine these homes and their ideal environment ‘and we know you will find MORE actual value and attractiveness than can be found in any similar home development in the National Capital. See These Wonderful Homes Today Homes Also Built to Your Order Drive Out Wisconsin Ave.---Opposite Chevy Chase Country Club---to Our Sign at Hunt Ave. or Langdrum Lane. price@ o, v n’o/c%% »HOMES ~HOMES Hrarn g0° PHONE WISCONSIN 4129 af,0ME0 0 combination by taking full advantage of this wide sloping homesite rolling %cvfinwurds toward picturesque Sligo alley. This front view gicture tells only half the story of this quaint, rambling whitewashed brick Farm Cottage which ;lillrllgs to the side of a tree-sheltered Actually the two-story rear elevation is even more appealing with its massive living room boasting many windows; its sunny bedrooms literally up among the trees; its matchless views from four exposures; its cozy, hospitable spaciousness throughout. With rare skill the architect, Mr. Volney O. Chase, has achieved this unique Result, a home that is wholly charm- ing, uniquely “different.” of X Yet this is but' one of many unusual homes recently erected or under con- struction in Sligo Park Hills—each of which you’ll want—any of which you can easily own. The price is only $12,503 with reason- able cash payment—balance iike rent. E. BROOKE LEE, President P. BLAIR LEE, Vice President CURTIS WALKER, Treasurer DIRECTIONS Drive out 16th Street to Alaska Avenue and District Line. Watch for large Sligo Park: Hills sign. Turn right at this point, following arrows to Sligo Park Hills. Sales Office, 7900 Georgia Ave. Phone Shepherd 2400.