Show rl Stocks Rebound 1 common stocks of the w and loan associations with i announce- its new economic game OF this enthusiasm in loan demand and fear of should by the stable or rates i uli Sin new pro the s and more favorably the savings Uhl deposits have been Sluing in at a record rate Jus far in While it doubtful that such a pace may tong it has less placed the S and L In- Position to cope with the expanding de-mand for mortgage This improved liquidity has also allowed the Savings and Loans to repay the expensive Federal Home Loan Bank advances that were made during the tight money periods of 1969 and early The current rate of these funds is 6 which is quite costly compared with the 5 percent paid on regular pass book ALONG WITH the decline in rates paid on term this resulted in solid first-half earnings gains for most S and We expect this upward trend to I The substantial improvement in demand for mortgage loans in the past few months is in sharp contrast to mortgage demand last when business was flagging badly and rates on mortgage loans were historically There has been a considerable decline m rates from the peaks of twelve months with chances favoring a sidewise movement for the balance of 1 the The increase in the I volume of loans j offset much of the decline in IT IS generally agreed that housing construction will be a significant contributor to economic based on recent statistics for housing residential construction appears to be heading This should result in a higher demand for mortgage loans for nt and into Over the longer the market for housing-which in turn governs demand for mortgage-money-should show good All this points the way toward more favorable conditions for the S and THE BUSINESS weakness and the tightness of money over the past two years gave the Federal Home Loan Bank an especially good opportunity to demonstrate its importance to the savings and loan In order to help the faltering S and the loosened reserve permitted the establishment higher and more competitive savings interest and made them special |