WbrtEtmdrg Freettngs f. S. BUGKI,EY IIOOR COMPAIIY

basis of the growing population, higher incomes and the rate at lvhich older housing is becoming unusable.

The National Savings and Loan League estimates more than 2,000,000 families rvill move from the $4000 salary bracket to $6000 this year. This offers, the League says, a "huge new market" for home builders in the $12,000$15,000 price range.

Housing Officiqls Wqfch Results Of Recent Mortgoge Brokes

Washington, D.C.-Officials of both the Veterans Administrationand the Federal Housing Administration are watching the market to see what happens to new home building once the reduction in maximum loan maturity from 30 to 25 years and the 2/o hrke in down payments is felt.

One government official said no "significant decline" is expected. Probably only after the current house-building season is over can any estimate of the effect be made, he said. He thought January would be a good indicator month.

Officials explained that the move \vas not directed against the volume of new building-top administration officials have said they see no evidence of overbuilding-but rather to forestall inflationary trends. Prices "have been creeping up" the past few months in various items used in construction. Although these rises have been largely absorbed, officials said "that can't go on indefinitely."

The National Association of llome Builders disagreed with the government's move and flatly predicted an annual

D. C. Essley & Son

WHOIESAIE

w. B. follEs tuf,lBER compAily, lilc.

Specializing in Wholesale Industrial Lrumber

5036 Irong Beach Avenue (East)

Lros Angeles 58, Calif. IrUdlow 8-8211 cut of i00,000 nerv units in housing starts next year once the present backlog of mortgages already approved is gone through. The NAHB fixed the value of these units at one billion dollars.

The National Association of Real Estate Boards, too, condemned the moves and said the government's "expressed fear of future shortages in certain building materials . islikely to have the effect of an invitation to hoarding building materials and boosting the prices."

Albert M. Cole, head of tl.re Housing and Home Finance Agency, which handles the FHA home loan program, has estimated nerv housing starts this year at between 1,200,000 and 1,300,000. The record year was 1950 rvhen 1,396,000 new starts were made. Earlier this year, new home building ran at an annual rate of about 1,40O,@0 but has tapered off since.

In June, FHA and VA reported that record highs had been reached in new home loan approvals. For VA it was 39,500 and for FHA 32,000. But both agencies reported that applications for nerv loans were dolvn in June from earlier this year.

The VA, rvhich industry olficials expect to be harder hit, reports that in 1954 the average dorvn payment rvas $1100 on some 407,000 loans guaranteed. T'rvo ont of every five nerv home loans were guaranteed on a no-don'npayment basis.

The VA also said the 3o-year loans were being traded at increasing discounts before they were dropped. But an industry official predicted that banks would soon start selling the ZS-year loans at a discount, too.

9o-doy Guoronlee on oll equipmenl. '51 ond '52 models hqve new molors ond complelely overhouled. All equipmenl in perfect condition qnd hqs been operoled less thon 40 hours per week qveroge since new on our locql dock qnd rentol operolions.