OTHER NEWS - Aug. 24, 1992

Drop in Mortgage Rates Fails to Spark Boom: Home mortgage rates have fallen to their lowest levels in almost 20 years and could drop even further, but so far the break in interest rates has yet to spark a boom in sales or construction. The rate on 30-year fixed mortgages fell last week to the lowest level since June, 1973, the Federal Home Loan Mortgage Corp., one of the nation’s largest purchasers of home mortgages, reported. The average rate for loans with a 20% down payment fell to 7.87% from 7.96% the previous week, the agency said in its latest survey of lenders. The current rate is more than a percentage point below the 9.17% lenders were charging a year ago. But while falling interest rates have helped families cope with debts as they rush to refinance their mortgages, they have yet to spark a rally in the housing industry. “So far what we are getting is a lot of refinancings, but in terms of the impact on purchases, not much,” said David Seiders, economist with the National Assn. of Home Builders.