Hope Star from Hope, Arkansas on August 14, 1974 · Page 12
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Hope Star from Hope, Arkansas · Page 12

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Hope, Arkansas
Issue Date:
Wednesday, August 14, 1974
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Page 12
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1'aRp Twelve W)l*fc (AUK.) SfAH Wednesday, August 14, 1974 Cost of buying home pushes up relentlessly By (',. DAVID WALLACE Associated Press Writer WASHINGTON (AP) - The cost of buying a home, particularly the crucial cost of borrowing money, is pushing upward relentlessly. Rising interest rates for home buyers were reflected Tuesday in the ^overnment's decision to raise the maximum allowable rate on federally insured home loans to a record 9.5 per cent. The rate had been 9 per cent for just more than two months. The increase was twice the government's usual quarter of a percentage point adjustment. Meanwhile, the Senate Tuesday approved a compromise $11.,') billion housing and community development bill that, anionK other things, authorizes $8.6 billion in block grants for urban renewal, model cities, open spaces and other community development programs over the next three years. The bill also increases from $45,000 to $55,000 the maximum amount of mortgage loans that federally chartered savings and loan associations can approve. It also increases the ceilings for FHA-insurcd and VA-guaranteed loans on single-family homes from $33,000 to $45,000. The government's decision on the higher interest rale followed two other government reports detailing record interest rales. The first showed that the effective rate on conventional loans—Ihose not insured by the government—increased to 8.97 per cent for new homes in July and 9 per cent for previously occupied homes. The higher interest rates, higher prices and more restrictive terms mean the average cost of buying a new home has increased from a purchase price of $36,700 with $8,400 down and payments of $200 a month in March 1973, when the current surge started, to an av- 00000004 erage price of $40,700 with $10,500 down and $241 a month in July. The second report indicated interest rates would continue to rise for home buyers, probably to 10 per cent or so over the next four months. The shape of things to come was in the results of Ihe auction of home loan commitments reported by the government's Federal National Mortgage Association. The FNMA, known as Fannie Mae, commits ilself periodically lo buying a certain number of mortgages over the next four months, selecting from among the lenders who offer the best return. Fannie Mae said the latest auction produced an average yield of just over 10 per cent for loans insured by the Federal Housing Administration and Veteran's Administration. The average rates for conventional loans was about the same. And at 10 per cent, that means FHA-VA home buyers and sellers would have to pay about 7.5 "points" to make up the difference between the 9 per cent in their loan agreement and the 10 per cent return the lender probably would be demanding. In cold cash, the buyer would have had to pay his maximum permissible one point, or $300 on a $30,000 loan, and the seller would have to forfeit 6.5 points, or $1,950 of the sale price. The 9.5 per cent rate would still leave the buyer open for the same $300 surcharge and extract about $940 from the seller. The change in inlerest rates would boost Ihe buyer's monthly payments from about $238 at the 9 per cent rale on a $30,000 loan paid over 30 years to about $248 at 9.5 per cenl. The University of Hawaii accepted 41 students when it opened in 1908. DOOOOOOOOOOO AUGUST CLEAN-UP ALL SUMMER READY TO WEAR 40-JUNIOR& MISSES DRESSES •"» Of FOR INSTANCE *20°° ORIGINAL NOW $ 5°° PRICE 12-LONG GIVE AW AY PRICES SEPARATE LONG PRINTED DRESSES 1/2 OF PRICE SKIRTS OF I.E. $ 15°° ORIGINAL NOW *3" PRICE ALL SWiMWEAR PRICE FINAL CLEARANCE PANTSUITS GET A BARGAIN-GET IT NOW SPORTS WEAR-PRICES SLASHED *22°° DOUBLE KNIT PANTS NOW $£80 *20°° SKIRTS J, ow $500 ALL SALE OTHER GOODS REDUCED AGAIN THESE AND OTHER BARGAINS - SHOP SCO CEN WHERI VOU'll FIND WHAT YOU'RE LOOKING FOR ...FOR LESS! HWY, 4 NORTH -HOPE, ARK OPEN MON-SAT 9-9 FLYING SAUCER SALE PRICES GOOD THRU SATURDAY THURSDAY-AUGUST 15 t»^ •** J HURRY!! THERE WILL BE "200 FLYING SAUCERS," OFF THE ROOF OF HOWARD BROS. DISCOUNT CENTER IN HOPE, ARK. EVERY PERSON THAT CATCHES ONE OF THE FLYING SAUCERS AUTOMATICALLY WINS A PRIZE. EVERYONE CAN WIN! SO HURRY!! LISTED BELOW ARE JUST A FEW OF THE 200 PRIZES TO BE GIVEN AWAY 20" HIGH RISE BIKE * DESK LAMPS * CLOCK RADIO * * $ 20, $ 10 and $ 5 GIFT CERTIFICATES ^ NVV * * * * * AND MANY MORE PRIZES* * * * * b** ft % HURRY TO HOWARDS FOR BACK-TO-SCHOOL FLYING SAUCER SALE! v BIC PINS HOWARDS DISCOUNT PRICE TYPING PAPER REG.73 C HOWARDS DISCOUNT PRICE DYMO LABEL MAKERS NO. 1800- PUT YOUR NAME ON YOUR BOOKS SCHOOL AND HOME ITEMS. HOWARDS DISCOUNT REG*2" PRICE BIC PACKAGE OF 3 PENS REG. 44 for 00 PEDIGREE THICK BLACK SOFT LEAD PENCILS REG33 C 2 IN PACKAGE PKGS 00 LA-PAGES GLUE 40Z. 3 $] <>o BULL DOG DESK PENCIL SHARPENER HOWARDS DISCOUNT PRICE REG*1" NEW COATS! / SPECIAL GROUP OF BOYS A ND GIRLS COATS \\ OFF REGULAR PRICE 'HURRY WHILE SELECTION 1$ GOOD! PENCIL SHARPENER HOWARDS DISCOUNT PRICE REG 53 C EL-MARKO FELTTIPMARKER all colors 3-90 c LA-PAGES MIRACLE TAPE 12.5 YDS REG. 31 c ROLLS FOR 00 200-COUNT NOTE BOOK FILLER PAPER REG.67 C HOWARDS DISCOUNT PRICE THERMOS SCHOOL LUNCH KITS HOWARDS DISCOUNT PRICE

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