April 6, 1990

LEAD: After a long climb in housing prices that has made home ownership all but a sure-fire investment, many experts think those prices will level off or decline during this decade, potentially changing the way people spend, save and invest their money.

LEAD: In a sharp contrast to a wave of bad news on Wall Street, Salomon Brothers Inc. said yesterday that its earnings for the first quarter would be far higher than many analysts and industry executives had expected.

LEAD: THE relationship between music and religion goes back further than can be traced, except through legend and surmise. It has not always been an easy marriage: from at least the time of Pope Gregory the Great, in the late sixth century, churches have periodically issued decrees that defined the kinds of music appropriate for both sacred and secular use.

LEAD: ECONOMY Many experts see a leveling off in housing prices during the decade, potentially changing the way people spend, save and invest their money. [Page A1.] Clothing sales helped most large American retailers increase their sales in March, and with a late Easter selling season ahead, results are likely to improve further in April.

LEAD: The Defense Department has quietly proposed diverting $20 million of the $30 million intended for research on high-definition television, a technology that has become a symbol in the debate over how the United States can best compete with the Japanese.