According to numerous economists, January was supposed to be the month when interest rates rose, but it didn't happen. In fact, interest rates generally fell back to levels last seen in November.

What caused rates to drop? While there is no single answer, Wall Street worries were an important factor. Rising unemployment, declining profits, and questionable bookkeeping have all caused investors to seek greater safety. The result has been more dollars for mortgages, and thus lower rates.

In some cases, rates hit new lows. The 11th District Cost-of-Funds Index -- an index widely used for adjustable-rate mortgages (ARMs) -- reached a level not seen in 20 years.

Home Affordability Remains Strong

Despite some economic dips, in most parts of the country homes remain readily affordable, according to the National Association of Home Builders.

"In July through September of last year, interest rates on adjustable- and fixed-rate mortgages hit their lowest point since early 1999, easing the way for potential buyers to qualify for a home purchase," said Bruce Smith, NAHB president.

Interest rates fell nearly a full point between 2000 and 2001.

Lower mortgage rates, said the association, "helped offset an increase in the national median home sales price from $156,000 in the second quarter to $161,000 in the third quarter. "

Each one percent decline in mortgage rates means another 400,000 buyers can qualify to purchase a home, according to NAHB.

Is DSL In Your Future?

According to a study by Verizon Communications, homeowners increasingly want homes with broadband networking. Such systems allow users to connect computer, video, entertainment, security and communications devices with a single integrated network.

By 2004, says the company, "nine out of ten new homes will be built with 'structured wiring" -- wiring capable of delivering data, entertainment and security services throughout the home."

Some 10.7 million of the nation's households now have broadband Internet access versus 5.6 million homes a year ago, according to Verizon. Also, says the company, 50 percent of DSL households have multiple computers.

Home networking is expected to increase tenfold over the next four years. Why? One reason may be the trend toward telecommuting: Verizon says nearly 29 million Americans telecommuted in 2001.

Internet Appliances To Arrive Later This Year

Is there a need to give refrigerators, microwave ovens, clothes washers Internet access? We'll find out later this year, when such products are introduced by LG Electronics.

The 26-cubic-foot refrigerator features a 15.1-inch screen and its own port to enable Internet surfing and shopping, as well as two-way videophone calls, watching TV, listening to music and e-mailing messages.

Consumers can check real-time grocery prices; obtain food, nutrition and recipe tips; be reminded of scheduled events; be informed when to change the refrigerator's filter, and learn cooking methods for products stored inside, says the company.

The microwave oven will enable consumers to download recipes from the Internet, automatically set appropriate cooking directions and "sense" when a food or drink is perfectly heated.