For three consecutive weeks, economic uncertainty has pushed down fixed interest rates on 30-year conforming loans.

Rates dropped from 5.74 percent to 5.67 percent Jan. 20, according to Freddie Mac's Weekly Mortgage Market Survey.

"Long-term mortgage rates are staying low because of great uncertainty over Iraq elections, oil supply and prices, and inflation, and about the economy in general, as economic indicators are continuing to show a mixed message," said Earl Peattie, vice president of National Financial News Services, in West Chester, PA.

"All this uncertainty makes many investors nervous and bonds then become more attractive -- money flowing into bonds (especially mortgage backed securities) brings mortgage rates down and keeps them low," said Peattie.

The reverse is true on some short-term rates which feel more pressure when the Federal Reserve raises benchmark rates.

"The Fed has indicated that inflation may be a problem and that interest rates have to increase to counter it. For home owners, this is a perfect time to capitalize on low long-term mortgage rates by refinancing to take cash-out to get rid of home equity loans, based on the rising Wall Street Journal prime and other indexes. That way, you can lock in a low (fixed) rate now and eliminate the risk of rising home equity loan rates, which are going up for sure," Peattie added.

Home Prices Higher Than Expected

When the final statistics are tabulated, the increase in the median price of existing homes should be up 7.7 percent in 2004 -- much more than originally projected. The median price on newly-built homes should be up by 10 percent, according to nearly complete data from the National Association of Realtors.

In January 2004, NAR forecast only a 4.6 percent increase in existing home prices and a 5.1 percent increase in the median price of new homes.

The $183,100 median on existing homes in 2004 should rise another 5.3 percent in 2005 to $192,800 as new home prices rise from $215,300 in 2004 to $227,200 in 2005, NAR reported.

Go With The Job Flow

If you are looking to move to towns where manufacturing businesses are likely to expand -- offering the potential for a better job market and higher home-buying income -- look to Nashville, TN; Atlanta, GA: Kansas City, MO-KS; Charlotte, NC; Indianapolis, IN; Phoenix, AZ; Albuquerque, NM; Oklahoma City, OK; Dallas-Fort Worth, TX; and Jacksonville, FL.

That's the Top Ten hottest locations for business expansion in 2005 according to Expansion Management Magazine's survey of 80 site location consultants whose job it is to help companies select the best locations for future facility expansions.

Consultants were asked to list their top city choices for relocating and expanding manufacturing companies. Factors included business climate, work force quality, operating costs, incentive programs, and the ease of working with local political and economic development officials.

Root For The "Home" Team

You've got to root for the "Street Smarts" team on the third installment of New York real estate magnate Donald Trump's "The Apprentice" reality television show.

This season it looks more like a realty show.

The nine Street Smarts team members are high school grads, self dubbed "Net Worth, Inc." because, even with their limited education, their net worth is three times that of their competitors, "Book Smarts," nine college grads who've branded themselves "Magna, Inc.," -- for magna cum laude, a title given graduates who exhibit great academic distinction.

The real distinction, however, is that Net Worth's higher net worth status stems from the fact that, in real life, the majority of the team makes a living in real estate.

There's "Audrey," one of Utah's youngest licensed real estate agents; Philadelphia's "Brian," who sells homes and realty software; Las Vegas' "Chris" who helped expand his father's real estate business; Los Angeles' "Kristen," an investor and top sales agent; and North Jersey's "Tara," the spokeswoman for a major Port Authority of New York and New Jersey development project.

Only three members of the opposing Magna team work in real estate industry -- "Bren," is a Memphis realty lawyer; South Florida's "Kendra" is a condo conversion queen and realty investment radio talk show host; and Boston's "Michael" founded a residential and commercial real estate development and investment firm.

The real estate-heavy and street-savvy Net Worth team won the first competition -- selling a new fast food burger -- largely because more of them knew how to operate a cash register, a skill you apparently don't pick up in college.

Published: January 25, 2005

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A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.