Fluctuating Interest Rate Is Supported
CHICAGO (UPI) ÛÓ A I leader in, the home loan I field strongly supports a Federal Home Loan Bank Board proposal that federal savings and . loan associations be allowed to make mortgages with interest rates that fluctuate, a common practice in Great Britain.</br></br>John P. Farry, president of the United States Savings and Loan league, says such mortgages could help end the ÛÏfeast or famineÛ cycles that have plagued^ home credit since 1966.	I ÛÏBy assuring a more relia- I hie flow of mortgage money, the variable rate loan could contribute to a much-needed stability in home building and residential real estate,Û Farry says.</br></br>ÛÏThis would benefit everyone involved, from builders, real estate brokers and investors to anyone who owns a home and one day may wish to sell it.Û</br></br>Mortgage rates would fluctuate according to a specified index based on general money market conditions. Buyers would have an option between accepting a variable-rate loan or one with a fixed rate.</br></br>Farry, who is president of the First Federal Savings and Loan Association, Albert Lea, Minn., says when interest rates go up sharply, home lenders often lose some savings because they cannot raise savings rates I fast enough.