Building Head Hits Lenders
A recent upward trend in mortgage interest rates prompted the president of the nationÛªs home builders to say msterday that ÛÏit is to be regretted that lenders do not appear to be showing the necessary restraint to contribute to curbing inflation and to establish stability for the home uying public.Û</br></br>The reaction of John A Stastny, head of the National Association of Home Builders, came in the wake of recognition that the discount point rates on FHA-VA loans increased 2 to 3 points in the last few weeks on those 7 per ent loans.</br></br>Also, the rates on conventional loans have been moving upwardÛÓin most cases about % -per centÛÓat savings and loan institutions in this area. The most common rate now ranges from TV\ to IVz per ent here.</br></br>Speaking to the press during the spring board meetings of NAHB here, Stastny speculated that an increase in the FHA-VA ceiling may be ÛÏimminent.Û However, he insisted that there is no justification for increases in either FHA- < VA or conventional rates.</br></br>Stastny charged that ÛÏthe traditional demand-supply relationship is being virtually ignored in the mortgage market where there is a surplus supply of loanable funds,Û adding that there is considerable speculation ÛÏprompted perhaps by uncertainty over inflation.Û