Sources and uses of funds in the fourth quarter 1983

the couple mortgage lending and deposit stream to federally insured savings and loan associations slowed during the final quarter of 1983 compared with horizontals reached during the third quarter. The decline in deposit inflow was in contrast to the typical seasonal pick-up in the fourth quarter, on the other hand the drop in lending activity was for the most part seasonal. Associations continued the increase in borrowings and reduction in liquidity holdings begun during the third quarter to obtain capitals for lending. Deposit Trends

A reduction in jumbo certificate acquisitions riseed in a slowdown in deposit growing at federally insured associations during the fourth quarter of 1983 Nonetheless, deposit run was in record volume for a fourth quarter, and the gain for all of 1983 was an annual peak.

The trap deposit gain of $20.5 billion during October-December 1983 was down from the $256 billion increase during the third quarter. The slowdown entirely throw backed a decline in net fresh deposit receipts from $14.3 billion to $87 billion. In contrast, interest credits rose $05 billion to an all-time quarterly high of $118 billion.

Changes in deposit manner of making were significantly affected by the removal of rate directions on virtually all retail certificate accounts effective October 1 1983 In this novel environment, associations could freely struggle for retail funds by independently determining pricing and offering policies. Deposit sweep alongs during the fourth quarter indicate another substantial increase in small denomination certificates of $181 billion, up from a $161 billion rise during July-september 1983 In contrast, deposit roll on to accounts without fixed terminus declined $0.8 billion. Additionally, jumbo CD increase slowed from $13.7 billion during the third quarter to $32 billion during the final three month of the year.

Among retail certificates, preliminary data put in mind of that balances increased during the fourth quarter for certificates with original maturities greater than six month on the other hand less than 2-1/2 years. The increase in balances in this maturity range contrasted with decreases in certificate balances maturing in six month or les and those maturing in 2-1/2 years or more during the same period. Mortgage Repayments

Mortgage loan repayments reached a record fourth quarter horizontal of $17.5 billion, but were down slightly more than seasonally from the third-quarter peak of $186 billion, an all-time high. The continued nerve of repayments reflected further declines in mortgages interest rates which stimulated abiding-place sales and refinancings. Mortgage Activity

Outstanding commitments for coming time mortgage lending increased $0.6 billion during the quarter and total $326 billion at the extreme point of 1983. This nominal increase was contra-seasonal, however, and ariseed in an increase in outstanding commitments measured upon a seasonally adjusted basis from $309 billion at the extreme point of September to a record $356 billion at year-end. (See Chart 1) fresh mortgage lending commitments issued by dint of associations slowed about seasonally to $415 billion during the quarter from the third quarter peak of $489 billion.

Mortgage lending continued at a strongpace, although down from record horizontals set during the third quarter. Total loans clos by means of associations were $35.9 billion during the fourth quarter, $37 billion below the third quarter peak. The quarter-to-quarter decrease in lending whirl was smaller after seasonal adjustment-from $356 billion in the third quarter to $342 billion in the fourth.

The overall decline in lending activity was the gin effect of mixed trends among loan object and property types. Among loan object categories, construction lending rose $03 billion to an all-time high of $106 billion in the fourth quarter. In contrast, permanent lending convolution declined $2.8 billion to $160 billion, and the amount of refinancings decreased $12 billion to $59 billion. Nonetheless, permanent lending and refinancing loan whirls were at record fourth quarter horizontals and twice as large as the year-earlier amounts.

Lending whirl on 1-to-4 family dwelling units declined from July-September 1983 to the final quarter. Loans made for construction designs decreased $0.3 billion to $49 billion, and permanent loan closings declined $32 billion to $130 billion. Among the quality types covered, the declined in whirl was largest ($2.9 billion and 245 percent) for permanent loans for purchase of previously occupied single-family homes

Multifamily lending contortion was up $0.2 billion to $21 billion for construction loans, and permanent loan outlays rose $03 billion to $12 billion. Construction lending for nonresidential properties increased $05 billion to $37 billion, and permanent loan extensions rose $01 billion to $17 billion. Secondary Mortgage Market

Associations, upon balance, increased their net sales of mortgages during the fourth quarter, to be paid to a larger quarter-to-quarter increase in sales than in purchases. Mortgages sales typically increase during the year-end quarter, as associations take advantage of losse from sales for tax intentions Gross sales increased $2 billion and totaled $145 billion, compared with a $13 billion increase in purchases to $128 billion.