Mortgage Rates Fall In December

Here's something few people expected: Despite a rising federal deficit, an expanding economy and a largely "jobless" recovery, mortgage interest rates fell in December -- from 6.02 percent plus .6 points on Dec. 4th to 5.81 percent plus .7 points on December 25th, according to Freddie Mac.

The drop is not quite as large as it seems -- a somewhat larger cost for points eats up some of the benefit from lower rates. Still, given economic expansion and big deficits higher rates would seem to have been in order.

For a $100,000 loan, a borrower would pay $600.84 per month for principal and interest over 30 years at 6.02 percent. In comparison, the same loan at seven percent -- a "low" rate not too long ago -- would cost $665.30.

By the measures of the past several decades 2003 was a wonderful year to be a borrower. What about rates in 2004? No one knows for sure, but for the latest rate information and property trends speak with your local broker. There may be more -- and good -- surprises in the marketplace.

Real Estate Sets Records In '03

While final numbers for the year are not in as of this writing, it appears that 2003 is a record-setter for housing. Powered by low interest rates, especially during the summer, home sales rose in most areas of the country.

In the world of new construction, says David Seiders, chief economist with the National Association of Home Builders, "we're projecting 1.084 million home sales for the year as a whole, the first time we've crossed the million-unit threshold, an increase of 11 percent over 2002ş s record."

Meanwhile existing homes also enjoyed a banner year.

The National Association of Realtors says it expects a record 6.07 million existing-home sales for 2003, up 9.1 percent from the 2002 record of 5.57 million sales.

Not only are unit sales up, so are prices: The national median existing-home price for 2003 is expected to rise 9.1 percent to $172,600, the strongest increase since 1980 according to NAR.

What does it mean for homeowners? For many households, the largest single source of wealth got substantially larger during the past 12 months.

Getting Good Deals On Parcel Deliveries

If there seem to be a lot of delivery trucks in the neighborhood, it's not a mirage. With growing catalog sales, increased online shopping and more home offices there's a lot more being delivered to residential neighborhoods.

Delivery costs can add up, however, so here are some secrets to lower your bills:

Published: December 30, 2003

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