Mortgage rates fell significantly during September in response to general economic trends as well as terrorist attacks in New York and Washington. Rates went below 6.5 percent for fixed-rate 30-year mortgages and under 6 percent for 15-year loans. Meanwhile, the Federal Reserve cut short-term rates for the eighth time this year.

Despite tough times on Wall Street, the country remains enormously strong, the employment rate is high, and the attacks of September 11th have unified the country in a way not seen for decades.

A year ago interest rates were above 8 percent for 30-year fixed-rate mortgages, so the new and lower rates represent an excellent opportunity to buy and refinance.

Real Estate Values Rise Over Time

While much attention has been devoted to Wall Street during the past few years, real estate has shown growth levels many shareholders would envy. According to the Office of Federal Housing Enterprise Oversight, a government regulatory agency, home prices nationwide rose 8.6 percent in the year ending June 30th.

More interesting, home prices have also appreciated significantly over time: up 34.8 percent during the last five years and 162.2 percent since 1980.

Which areas did best? You might be surprised, but New England showed the most appreciation over the past five years -- 49.2 percent, just nudging out the Pacific region (46.2 percent).

Past performance does not guarantee future results, but for many people it turns out that home is not only where the heart is, it's also been a very good investment.

What Happens When Disaster Strikes?

The terrible events in New York and Washington during September raise an important question: What happens to mortgage obligations when disaster strikes?

Whether from hurricane, fire, earthquake or for other reasons, most lenders -- but not all -- will act quickly to assist local homeowners. If you find that you have been impacted by a disaster, or you know others who face such difficulties, there are several steps to follow:

1. Contact your lender. Loan terms and conditions can only be modified with approval by the lender.

2. Ask what programs are available. Generally, lenders will offer such options as late payments without penalty, counseling, credit forbearance (not reporting late payments to credit reporting agencies), foreclosure delays, and revised payment schedules.

3. Confirm loan changes in writing.

4. Keep all disaster-related paperwork, especially repair bills. Take photos and videos of the property to record damage. This information can be important when asking for lender assistance, and also to verify insurance claims and support tax reports.

5. Speak with your tax professional. You may be eligible for special write-offs and payment delays.

6. Contact your insurance broker. Insurance companies are set-up to assist in the event of disaster.

Homes Grow Over The Years

Does it seem as though homes are bigger than they used to be?

It's not an illusion, houses are bigger than in the past. In fact, the size of a typical new home has more than doubled since 1950.

According to the National Association of Home Builders, a typical home finished in 1950 had 983 sq. ft. By 1970 the average size was 1,500 sq. ft. and we reached 2,080 sq. ft in 1990. By 1999, a typical new home had 2,225 sq. ft.