ERIC Number: ED111590
Record Type: RIE
Publication Date: 1975-Aug
Differences in Housing Credit Terms and Usage Between Metro and Nonmetro Areas in the United States, 1971. Agricultural Economic Report No. 305.
Spurlock, Hughes H.
In 1971, a U.S. Census of Housing surveyed the financing of homeowners and rental properties, including characteristics of mortgages, properties, and homeowners. Data were obtained on places located outside Standard Metropolitan Statistical Areas (SMSA) and in places of less than 10,000 population, and on rural areas located outside SMSA's. These area classifications were considered as being close approximations to the "rural area" defined in the 1949 Housing Act. Areas classified as SMSA's were considered proxies for urban areas. To determine rural-urban differences, a comparative analysis was made of data contained in the survey on credit terms and usage in SMSA's, in non-SMSA's, and in places of less than 10,000 population and rural areas located within the non-SMSA counties. Analysis showed home buyers in rural areas paid higher interest rates on conventional mortgages, had shorter repayment periods, and had fewer choices of lenders. Yet, credit conditions did improve during the 1960's in rural areas. Savings and loan associations, the major home mortgage lenders, became more active in rural areas. They held 35 percent of the first mortgages in 1971 as compared with 23 percent in 1960. Expansion of activities by Federal agencies in rural areas tended to narrow the gap between the percentage of loans guaranteed and insured in rural areas as compared to metro areas. (Author/NQ)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Economic Research Service (USDA), Washington, DC. Economic Development Div.