April 16,
1999
Texas Receives
Third Most Domestic Federal Funds
Federal spending for domestic
benefits, subsidies, grants, goods and services, and salaries
and wages in fiscal year 1998 hit $1.5 trillion. That's 3.4
percent more than the previous year. Texas received a big
share of the total.
The increased spending has been blamed
on payments for disability and retirement, grants and
procurement contracts. Federal direct payments for disability
and retirement totaled $507 billion, up 3.7 percent from 1997.
Social Security spending totaled $403 billion, up 3.9 percent.
Texas received $92 billion in federal
funds. Only California ($100 billion) and New York ($43.1
billion) received more.
Harris County in Texas received $14.4
billion -- fifth among U.S. counties. New York City ($43.1
billion) and Los Angeles County ($41.9 billion) received more
federal funds than 42 states.
Texas ranked third among states in
Defense Department spending -- $16 billion. Bexar County,
Texas was fifth among counties or county equivalents. Bexar
County received $3.3 billion.
NAR Economic
Outlook Is Rosy
WASHINGTON, DC -- The U.S. housing
market continues its strong performance, supported by a case
of economic factors including low unemployment rates, low
mortgage rates and higher consumer income, according to the
latest "Real Estate Outlook" publication from the National
Association of Realtors.
National Association of Realtors' new
Chief Economist James F. Smith, wrote that in January the
nation's current period of continued growth had surpassed the
previous longest ever peacetime economic expansion, which
occurred between November 1982 and July 1990.
"And the ride isn't over yet," said
Smith. "On January 16, 2000, the current economic growth will
become the longest one in the history of the United States,
topping the 106 months from February 15, 1961, to December 15,
1969.
NAR forecasts growth in the real gross
domestic product (GDP) will slow to 3.5 percent for 1999 from
3.9 percent last year, while consumer price inflation is
expected to rise 1.8 percent this year, up from 1.5 percent
last year.
Disposable income is expected to rise
3.4 percent this year, while unemployment is expected to dip
to 4.2 percent in 1999 from 4.5 percent in 1998.
Major Overhaul Of
Real Estate Licensure Under Consideration
Qualifications for a Texas real estate
license are going to be reviewed. A notice of intent to review
the provisions was approved this week by the Texas Real Estate
Commission. Suggestions for substantive changes are to be
considered during coming weeks.
TREC Administrator Wayne Thorburn,
said the assessment is particularly important because it "goes
to the heart of all professional real estate education
requirements. I urge all interested persons and groups to
carefully consider these rules and advise the Commission on
what changes they feel may be needed."
Rules
Repealed
Four rules relating to conditions for
payment of certain commissions are being considered for repeal
by the Texas Real Estate Commission (TREC). The rules relate
to payment of certain commissions, definitions of real estate,
offering property from another state and auctioning the
property.
If adopted, the proposal would reduce
25 rules in 11 pages to 21 requiring only seven pages. The
four provisions are viewed as unnecessary because their
requirements are already in the Real Estate Act.
Housing Market
Index Declines Further
After reaching record highs at the end
of 1998, the National Association of Home Builders' Housing
Market Index (HMI) declined for the third consecutive month in
March.
The March reading of 69 is still
relatively high but is down four points from February and down
nine points from the HMI's all-time high of 78 in November and
December of last year.
"The average interest rate on 30-year,
fixed-rate mortgages rose to more than 7 percent in early
March, and that increase likely played a role in builders'
reduced expectations," said Charlie Ruma, NAHB president. He
said that while the index suggests slightly reduced demand,
builders continue to express concerns regarding labor
shortages and the availability of finished lots.
The HMI is derived from a monthly
survey of builders. NAHB has been conducting the survey for
nearly 20 years.
WRI Buys Sherman
Plaza Business Park
HOUSTON, Tex. /PRNewswire/ --
Weingarten Realty Investors announced yesterday the company
has acquired the Sherman Plaza Business Park in Richardson.
The property was bought from the Fidelity Mutual Insurance
Company. A sale price was not disclosed.
Sherman Plaza contains 99,500 square
feet and is located on 7.2 acres. It was developed in 1978,
and currently is 87.5 percent leased.
Build-To-Suit
Facility Going Up In Lewisville
FORT WORTH, Tex. /PRNewswire/ --
Panattoni-Hillwood will construct a 415,000-square-foot
build-to-suit facility in the Waters Ridge II Business Park in
Lewisville. The facility is for Four Seasons, a major supplier
of automotive air conditioning and heater replacement parts.
Largest Hampton
Inn Opens In Mesquite
MESQUITE, Tex. /PRNewswire/ -- The
largest Hampton Inn and Suites in the United States has opened
here. The hotel and adjacent rodeo arena offer 84,000 square
feet of meeting space.
The hotel has the third largest
ballroom in the Dallas-Fort Worth Metroplex -- 17,500 square
feet -- and the most meeting space per room in Texas.
The hotel has 160 guest rooms,
including 54 deluxe and fireplace suites, each with a fully
equipped kitchen. The hotel is located at the intersection of
Interstate 635 and Texas Highway 152.
Texas To Receive
HUD Grants
WASHINGTON, DC -- Housing and Urban
Development Secretary Andrew Cuomo this week awarded public
housing authorities $46.8 million in Family Unification Grants
to help members of about 7,000 low-income families stay
together despite housing crises.
Housing authorities in 31 states,
including Texas, Puerto Rico and Guam, will receive the grants
which fund rental assistance subsidies that enable parents to
pay just 30 percent of their income to rent privately owned
apartments.
Mortgage Loan
Applications Down
WASHINGTON, DC -- The Mortgage Bankers
Association of America (MBA) released its weekly Mortgage
Application Survey on Wednesday, reporting that mortgage loan
applications for the week ending April 9 decreased 1.8 percent
from the previous week. Compared to the same week last year,
loan applications were down 13.1 percent.
According to the survey, the average
contract interest rate for 30-year, fixed-rate mortgages was
6.87, down from the 6.96 the previous week. Points decreased
from 1.42 to 1.34 (including origination fee) for 80 percent
loan-to-value ratio loans.
The average contract interest rate for
one-year ARMs was 5.99 percent, up slightly from 6.96 the
previous week. Points decreased from 1.23 to 1.11 for 80
percent LTV loans.