Reports on the mortgage money market, in terms of rates and number of loans, reflect continuing strong activity in new home construction across the country.
For instance, the Federal Home Loan Bank Board announced that interest rates on conventional home mortgage loans (those made without federal support by savings and loan institutions) declined slightly to an-average effective rate of 8.94 in early April. It was the fourth consecutive monthly report showing a downward movement of interest rates on new houses and the seventh monthly drop on mortgages for resale houses.
However,FHLBB chairman Garth Marston said that the latest declines were the smallest in the downward trend, apprently reflecting some firming of commitment rates in response the increasingly strong demand for mortgage funds for both new and resale houses being financed by buyers.
In the Washington area, the FHLBB report showed the effective rate on new house mortgages at 8.86 per cent on the average and the same rate for mortgages on resale houses.
Meanwhile the Department of Housing and Urban Development announced that mortgage loans closed in February totaled $8.3 billion, up 36 per cent over the total registered a year earlier.
HUD reported that savings and loan associations made 55 per cent of those loans, compared to 53 per cent in February, 1976. And the market share for loans made by mortgage companies was 18 per cent, up from 15 per cent in 1976. But the share made by commercial banks declined from 21 to 18 per cent for the comparative months.
Additionally, HUD said that construction loans for new homes totaled $1.9 billion, up 34 per cent add multi-family construction loans were up 27 per cent.
In terms of secondary mortgage activity, the Federal National Mortgage Association reported that its purchases of single family residential mortgages in the Washington area totaled $27.7 million in the first quarter of this year, with more than $23 million in conventional loans and more than $3 billion in VA guaranteed loans. The FHA-insured loans in this area totaled $335,600.
The total FNMA mortgage activity in single family dwellings for 1976 was $137,591,200, with $126,353,300 being in conventional loans, $8,652,900 in VA-guaranteed loans and $2,585,000 in FHA-insured loans.