Mortgage Rates Reach New Lows

Interest levels for 30-year fixed-rate financing continued to drop, according to Freddie Mac. The big secondary lender said, a typical 30-year loan could be had with a 6.05 interest rate in mid-September -- the lowest level since 1971 when Freddie Mac first began tracking rates. Interest levels are also significantly lower than a year ago when similar financing was available at 6.8 percent.

Rates for other loan products were also down substantially: 15-year mortgages stood at 5.47 percent in mid-September, the lowest level since 1991 when Freddie Mac first began to keep records for such loans. Meanwhile, start rates for adjustable-rate mortgages (ARMs) hit 4.28 percent, the lowest level since 1994. ARM rates, of course, can rise or fall during the term of the loan.

Will There Be A Real Estate Bubble?

Newspapers around the country have carried articles recently debating whether there will or will not be a real estate "bubble," a general and substantial decline in property prices.

No one knows what the future will bring and since real estate is a commodity it's true that prices can go up and down. That said, why do reporters ask Wall Street analysts about real estate pricing trends when it's clear that many analysts have been terribly wrong about individual stocks as well as overall market patterns?

Here's an alternative idea: Speak with your local real estate broker and ask for an assessment of your immediate marketplace. For instance: Is the local population rising? Is the local job base growing or contracting? How long does it take to sell a typical existing home listed in the local MLS? How long did it take a year ago? Are mortgage rates rising or falling? Where do they stand compared to last year?

Be aware that what happens to real estate prices nationally or regionally may not reflect local trends, the prices in your neighborhood. Also, look behind the numbers. For instance, suppose average prices in a given ZIP code fell significantly during the past year. Sounds bad -- but what is the mix of homes being sold? Perhaps a new townhouse development has opened and the prices for such properties are generally lower then detached homes, thus skewing the average down. Meanwhile, it may be that detached home prices have actually been rising during the past year.

How To Protect Against Carbon Monoxide

Virtually every home now has a smoke alarm and often more than one. In the same way that smoke detectors make great sense, there is also a strong case for carbon monoxide detectors.

An estimated 1,500 people die each year from unintentional carbon monoxide exposure and as many as 40,000 need emergency medical assistance, according to the Centers for Disease Control and Prevention (CDC).

"Carbon monoxide," says BRK Brands, the makers of "First Alert" alarm products, "comes from anything that burns fuel, such as gas furnaces, stoves, water heaters, barbeque grills, wood-burning fireplaces, and automobiles. It is a by-product of incomplete combustion and can easily build up in enclosed or semienclosed areas throughout the home."

Detectors are available from hardware stores and contractors. For the few dollars involved, they make a smart household investment. Also, have your furnace checked by a qualified professional. Many landlords do this each fall before the winter heating season begins.

Homes Still Preferred Investment

Where do Americans want to put their money? According to Fannie Mae, the number one choice is a home.

A survey by the nation's largest secondary lender showed that "70 percent of Americans see buying a home as being a safe and smart investment. This is compared to 38 percent of the respondents who said that an IRA or 401K plan was a 'safe investment with a lot of potential' and just 10 percent who felt that way about stocks."

The survey also found that:

• 40 percent of all Americans "follow the housing market very or fairly closely."

• "The investment aspect of buying a home is important to many Americans, and the potential financial gain is often more of a reason to buy than is either the size or location of a particular house."

• Most Americans, 86 percent, "believe that housing prices will go up either a little (32 percent) or a lot (19 percent) over the next year or remain about the same (35 percent)." Eight percent say prices will drop in the coming year."

For more articles by Peter G. Miller, please press here.