Mortgage Rates Bump Up, Remain Low

Mortgage rates in late May rose somewhat when compared with interest levels for the middle of the month. That said, a look at rates for 30-year financing during the past six months shows that interest levels remain at the lower end of the chart according to BankRate.com.

Recent months have presented puzzling questions for investors. Is the recession over? If yes, how strong is the recovery? Is now the time to get back into stocks or stick with long-term investments that ultimately become mortgages? For homebuyers and those refinancing, more investor money in long-term investments generally means lower mortgage rates.

Various economic data provide ammunition for just about any viewpoint, the reason perhaps for huge one-day rises and declines on Wall Street in the past few weeks.

America Continues On The Move -- But Not Far

If there seem to be a lot of new people in the neighborhood, don't be surprised: America is a nation of movers.

According to the Census Bureau, an estimated 9,624,395 people moved in 2000 and between 1995 and 1999 some 42.6 million of us relocated.

The Census Bureau says the U.S. has 105 million occupied housing units, so about 9 percent of us move each year. Seen another way, a migration equal to almost the entire population of Michigan moves annually.

While huge numbers of people move each year, few of them move far. A study by the National Association of Realtors shows that in 1999 a "typical" buyer moved just 10 miles. For first time buyers, a typical move is just 8 miles -- only 9 percent moved more than 50 miles.

Termites Cost Big Money -- But Damage Is Preventable

A study by the Congressional Research Service, a part of the Library of Congress, estimates that termites cause damage worth $1 billion annually.

Unlike cartoon images, a termite infestation does not result in the immediate destruction of a home. It takes time for termites to do their work, time enough for owners to protect their property.

• "Generally," says the Centers for Disease Control and Prevention, "the first sign of infestation is the presence of swarming termites on the window or near indoor light. If they are found inside the house, it almost always means that they have infested. Other signs that may be found are: termite wings on window sills or in cobwebs, and shelter tubes which are tunnels constructed by the termites from soil or wood and debris."

• To prevent termites infestations, "remove all potential sources of outdoor infestation such as stored lumber, firewood, scrap lumber and dead trees or woody ornamental shrubbery," advises the Texas Cooperative Extension service.

• Because strong chemicals are used against termites and other wood-boring insects, have extermination work done by professionals. Use the services of a licensed pest control operator who is properly insured and bonded. Ask about training and get guarantees in writing.

Rising Home Improvement Numbers Reflect Housing's Impact

About two-thirds of the national economy is based on consumer spending and homeowners are doing their share and more: The latest sale figures from Home Deport and Lowe's show huge gains.

In May, Home Depot reported quarterly sales of $14.3 billion (up 17 percent) and profits of $856 million (up 35 percent) for its 1,386 stores. Rival Lowe's said it earned $345.8 million for the quarter -- up 53.5 percent on sales of $6.47 billion. Lowe's has 785 stores.

Why so much interest in home improvement? Last year saw record sales for both new and existing houses and when people move they naturally enrich and customize their new homes. The result is that hardware stores, home improvement centers, furniture stores, and many other local merchants see rising sales. Such sales benefit everyone by creating more jobs and bringing additional dollars into the economy.

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

Published: May 28, 2002

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