Printer Friendly

FED'S DECISION NOT TO REDUCE INTEREST RATES MAY FUEL MORE DEMAND FOR MORTGAGE LOANS, EXPERT SAYS

 FED'S DECISION NOT TO REDUCE INTEREST RATES
 MAY FUEL MORE DEMAND FOR MORTGAGE LOANS, EXPERT SAYS
 BEVERLY HILLS, Calif., Feb. 24 /PRNewswire/ -- Mortgage lenders who have helped spur the first signs of a recovery in the moribund Southern California economy by lowering interest rates to levels not seen since the early 1970s may have made their final cuts, at least for the near term, according to a leading Beverly Hills mortgage broker.
 "The Federal Reserve's decision to go no lower on its interest rates, at least for the time being, is a clear signal by Washington that a recovery has begun," said Gloria Shulman, president of Crestview Financial Group, a major residential mortgage brokerage.
 Although there is no direct link between the Fed's rates and mortgage rates, Shulman noted that it is at least one of the indicators used by lenders in setting interest rates.
 More importantly, she added, the New Hampshire primary election results may be the best indicator yet of what home mortgage and other interest rates will do in the future.
 "With Bush's poor showing in New Hampshire, you can bet he and his advisers will act swiftly to put additional pressure on the Fed to either lower rates even more or at least keep them at their present levels," she said. "That will only add fuel to the current borrower 'feeding frenzy.'"
 Shulman said she expects mortgage rates to moderate once again after the slight increases of the past few weeks, helping to propel the strongest mortgage financing and re-financing market of the past decade to new highs.
 "Although we saw some stirrings within the real estate market a year-and-a-half ago, it was nothing like the steadily increasing volume we've experienced in the past three months," said Shulman. "Low interest rates will only fuel consumer demand."
 Shulman, who also has increased her lending staff significantly during the past three months to handle the rising volume of new loans, predicted that it will indeed be the housing market that leads the nation out of the recession.
 "President Bush said in his State of the Union address that historically real estate has led the nation out of its economic downturns," she noted. "We are seeing the signs of that everywhere."
 During the same week that the Fed indicated it would not lower interest rates further, the Commerce Department reported a 5.5 percent increase in new home construction, the highest rate since May 1990. Retail sales also were reported up slightly in January.
 -0- 2/24/92
 /CONTACT: Keith Karpe or Roger Pondel of Rifkind Pondel & Parsons, 310-207-9300, for Crestview Financial Group/ CO: Crestview Financial Group ST: California IN: FIN SU:


EH-KJ -- LA002 -- 1923 02/24/92 13:02 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 24, 1992
Words:452
Previous Article:UAW OFFICERS REACT TO GM ANNOUNCEMENT
Next Article:SUBURBAN TRANSIT CHIEF QUITS; SAYS SHUTDOWN OF BUS SERVICES COULD BE AVOIDED; CRITICIZES SUBURBAN OFFICIALS FOR INACTION
Topics:


Related Articles
REDUCTIONS BY FED, LOWERING OF PRIME RATE WILL HELP FUEL STOCK MARKET-TYPE RALLY FOR HOME MORTGAGES, BROKER SAYS
The Time May be Right to Purchase, Refinance, Reports GMAC Mortgage Corporation.
E-LOAN Debunks Top 10 Refinancing Myths.
Money and financial markets.
Don't Delay Any Longer - Now is the Time to Buy or Refinance, Reports Bradford Mortgage Company.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters