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Show The Enterprise Review , July 21, 1976 Investors in Suspense Continued From Page lb Communication Gap Those rumors are a result of a breakdown in communication between investors and brokers, says John Schumann of Surety Life Mortgage Co., president of Utah Mortgage Bankers Association. Actually, although interest rates may go up toward the end of the year, that upward swing is more likely to be a result of . a natural economic cycle, not a result of politics, he continued. Schumann says commercial mortgages or loans are hard to find now because investors can get as high a yield for bonds as they can for the somewhat riskier mortgages. Everyone is nervous People Listen to Radio for Music and News... There Are Many Fine Stations there are many Playing Music... about inflation, Schumann says, but investors have to take the chance. One of those chances is the result of November elections. Investors speculate that short term interest rates will go up substantially toward the end of the year, and long term rates will go up less. Large investors are putting money in short term investments because the yield is higher. And they are shortening the term of long-terinvestments, Schumann says. ,A new development in long termcommercial loans, for example, is the balloon payment due in 5 years. The balloon payment is a There is Only ONE News and Information Station! 24-HOU- R m 10-1- hedge against inflation, It reSchumann explains. quires the borrower to come up with the balance in cash or find another loan at the current interest rate in 10 or 15 years. This way the lender is not locked into a lower interest rate while the inflation rate is going up. Local Scene On the homefront, Utah's economic picture looks excel- lent according to the July issue of First Security Newsletter. Coal production was 14 percent higher in the second quarter 1976 than it was for the same period last year. Construction activity has become a major strength in the local economy, with the number of building permits increasing 30.2 percent, and the value of residential construction increasing 47.6 percent over last year. Retail trade between July, 1975 and May, 1076 increased 14 percent over the same period last year. And the value of loans outstanding at Federal Reserve reporting member banks increased 14 percent over last year. Demand for consumer and mortgage loans continue to strengthen in the second quarter and commercial borrowing is expected to pick up in the second half, of the year, wrote Kelly Mathews, Newsletter editor. News adjacencies have always been the best radio advertising buy. At KWMS, thats all we sell. 364-368- 5 |