NEWg BR[EFS

The frail and faltering signs of an upfurn in housing are already in some signiftcant peril due to the federal goverrvnent's stepped ap borrowing in the nation's money markets. . .the effect is to dry up mortgage money, send its cost up, which in turn prices most people out of the new home market.

A key indicator of future in- terest rates on home loans recently hit its highest level in l0 mos. .the prime rate is presently at 9Vo and under pres. sure to move higher. . .s&l officials already note a "temendous downturn in savings bank deposlls"which could signal a growing reluctance by s&ls to lend $$ to prospective homebuyers.

The average price of new homes is now 50% higher than 5 yean ago; in Ca. the median sale price of an existing single family home in July: $43,100 (the nt'l average is $33,830), median price of new homes now is almost $41,000.

Housing starts in Aug. (latest available figs.) tilted upward slightly to 1,260,000 on a seasonally adjusted annual basis; this was 9% above the year earlier. . permits for future construction, however, declined 5.5%; only 751,400 units have been started in the lst 2/3rdsof '75, off a brutal 26%fwm '74's slow pace.

Of the four major geographical areas in the U.S., the least amount of slippage from last year's {igure occurred in the West and the North Central states, both tied at lSVo for that dubious honor. .some experts now feel total starts for both '74 & '75 will barely surpass tho single year peak of 2.38 million units set in '72. .

Remodeling continues to be the bright spot, the American

Plywood Assn. notes strong activity in both residential and commercial remodeling; a new Mc Graw-Hill survey finds nearly /z of 1000 builders surveyed saying they are more involved in remodeling now than ever before with continued growth expected even afterlhome building recovers.

A scattered shortage of trucks in rnany Western states recently has caused some delivery slowdowns at wholesqle and retail levek; recent rail hikes, trucker scheduling of lumber carrying backhauls and dealer willingness to pay more to buy smaller quantities than a RR car are among reasons cited for the squeeze.

At presstime, it appeared that successful steps were being taken finnlly to settle the prolonged B.C. forest products industry strike. .2 unions began the strike in the Canadian province July l6 and subsequently expanded picketing to close most other industry operations.

Louisiana-Pacific plans to rebuild its Lakeview, Or., sawmill that was razed by fire this summer; cost is in excess of $l million, completion set for lan.'76 with all new equipment producing lumber up to 20', capacity per shift is 100,000 bd. ft. .

Dant & Russell is reporting excellent reaction to its recent marketing moves putting its l st barge of hemlock into the Eo; Ca. market and its lst offering sheet in some years promoting dry and k/d Doug fir and hemfir, among other items. -ilfcGraw Hill sez the value of construction contracts in July showed little change from July '74, which is an improvement over earlier mos. of this year.

Simpson Building Suppty Co. had a successful Open House last mo. at their Santa Clara,, Ca., operation. . .Oregon Pacific'

Industries also hosted several hundred to an Open House of their Fairfield, Ca., distribution center..

Cawolt Moulding Cb., Carson, Ca., is now a primary distributor in the West for cellular vinyl mouldings developed and mfgd. by Florida's Manta Industries. a new People's Lumber facility is under construction in Oxnard, Ca., a combo contractor/ d.i.y yard; the consumer part is 50,000 sq. ft.

Cashway Building Materials, Inc., El Paso, plans '76 openings for stores in Provo, Ut.; Denver, Co.;and 2 in Reno, Nv. Sutherland -Lumber recently opened a complete hcne improve ment center in the Puente Hills Mall, near Hacienda Heights, Ca., . . .Thunderbird Stores recently opened a new 25,000 sq. ft. unit in Salem, Or., with the next unit set for Billings, Mt.

'A., .C. Houston Lumber Co., Wichita, Ks., is building a 25,000 sq. ft. horne center in Silver City, N.M., lst of Houston's l5 stores positioned for the d-i-y trade; the others are contractorlbuilder oriented. . Sunrise Foreit hoducts is a new wholesale firm with offices in Portland and Fullerton, Ca.; Darrell Robinson (ex-pres. of Oregon Pacific) is the top officer, Al Bufkin heads the Fullerton operation.

The old sailing days aren't dead yet: lUhite Brotfters' sales mgr. "Nibs" White recently fielded (in th fu.) a request for a I 2"x 12"x50' Doug fr timber as a mast replacement; the 103 yearold Oakland firm has supplied the boat trade for many years. Summit Lumber Co. has moved tc new offices in L.A., yard remains in Long Beach.

Amwest Forest Products is a new Medford, Or. wholesaler. C. E. Klumb Lumber has closed its Sacramento, Ca. office and moved it to Missi:ssippi. .