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Show developments to run its course, though it probably would vary considerably among different market mar-ket areas. .. Trends In Housing Finance Given In Banking Review Trends in housing finance and residential construction are given in the following article from the monthly review re-view of the Federal Reserve Branch of San Francisco, California. Present conditions and future prospects in the closely related fields of housing finance and residential resi-dential construction pose some interesting in-teresting and highly significant problems. The development which is attracting most attention currently cur-rently is the growing scarcity of mortgage credit in the form of Government-guaranteed or insured 4 percent loans. This has given rise to the consideration of some change in credit terms that will stimulate the flow of credit for the purchase of houses. The present trend toward less easily obtainable credit involves larger down payments and larger monthly payments than have generally been required since 1945. It is possible that these stricter credit requirements will not reduce re-duce demand for new houses at present prices sufficiently to affect af-fect the present high level of residential resi-dential construction. Should stricter credit requirements result in a substantial decline in demand, however, at least a temporary drop in the volume of residential the next several months. If the labor and materials thus freed are not transferred to other types of construction, such a drop should result sooner or later in a decrease in the selling prices of houses. That in turn would enable some of the people who are now excluded from the housing market by high prices to enter the market. Full employment of men and materials in the field of residential construction con-struction might then be restored, but at a lower level of prices for the finished product. It is impossible impos-sible to predict the amount of time required for such a chain of |