European Stars And Stripes (Newspaper) - April 6, 1986, Darmstadt, Hesse                                Magazine America housing Boom it s crazy by Christopher Sullivan associated press mortgage rates in the United states have tumbled below 10 percent House sales Are booming and homeowners Are storming Banks to refinance and Cut their monthly payments. Bob Allen thinks the trend while it lasts is out of this world. It s like a Halley s Comet event. It Only happens once in a while and it s Here exclaimed Allen office manager for Winchester mortgage co. In Denver. He s certainly not alone in his excitement. Of my god we re seeing tremendous activity enthused Debbie Rumel vice president of Carolina Home mortgage corp. In Hendersonville . We be been waiting a Long time for this to happen. Now it s happening we re understaffed and it s  going crazy too Are the . Home building Industry realty agent licensing offices and Ordinary people who finally see a Chance to realize the dream of owning three bedrooms and a Bath and a half of their own. The question now is How Long can it last some hard sell Consumers Are holding out for even better deals and opinion is divided on whether they la be rewarded. I still get the feeling the real Rush is yet to come said David Walker chief economist with people s Bank in Bridgeport Conn. If the consumer perceives that interest rates have bottomed out and Are on the Way up the Market will become even More fever  sometime in the near future we could see a rate below 9 percent said Greg Childers of the Paramount Bond & mortgage co. In St. Louis. Countered Al Karlander of Inland mortgage co. In Indianapolis i can t see it getting much  in the meantime lenders Are innovating in the scramble for customers. Wauwatosa savings & loan in suburban Milwaukee has voluntarily lowered rates one percentage Point on about 1,000 mortgages at 11.9 percent and president Raymond Perry said he might lower the rate again. No fees were charged the borrowers. I be gotten Calls from some competitors saying Don t do this " he said. Free refinancing is the pitch offered by a South Carolina company first Carolina mortgage group. If they be got a loan that has a 12 percent mortgage or above it will be switched out lowered to 12 percent with no Cost at All no origination no Points no nothing to the Borrower said president David Cannon. He conceded that 12 percent is Well above the Best rate nowadays but said the Exchange could save thousands of dollars for someone who lacked the Cash to pay closing costs for refinancing at a better Deal. Among those better deals 9% percent with 1 /2 Points for a 15-year fixed rate mortgage at first Atlanta mortgage corp. 9.875 percent with two Points for a 30-year fixed rate mortgage at . Ban corp mortgage co. In Portland Ore. 9.625 plus two Points for a 15-year fixed rate mortgage at first National Bank of Maryland. A Point is 1 percent of the principal amount of the mortgage. The frenzy for mortgages began after the veterans administration in Washington reduced the top interest rate for a guaranteed mortgages to 9.5 percent from 10 percent on March 3. A loan rates peaked at 17.5 percent in 1981 and had t been below 10 percent in seven years. Conventional Home loan rates had been dropping gradually but after the a announcement single digit rates under 10 percent seemed to be virtually everywhere. Loan officers now find themselves the most popular people in town. I got out of an appointment this morning and was Given 21 phone messages said Robert Groth who arranges Loans at North Shore savings in Racine wis. Ellie and Ralph dil Imandi hurried to refinance the House they bought six years ago through a Lender in Framingham mass. We saw the rates and i said wow we can t pass these up mrs. Dil Imandi said. I continued on Page 14 sunday april 6, 1986 the stars and stripes Page 13