Low Interest Rate Redux

After peaking at 6.04 percent earlier this year, fixed interest rates on 30-year conforming mortgages have fallen for several consecutive weeks to 5.8 percent.

That gives home buyers and owners who want to refinance another shot at lower rates, at least until economic indicators push rates the other way.

"Interest rates in general, have been oscillating with every piece of economic news released lately. The market is switching its focus between the strength of the economy and the fear of inflation," said Frank Nothaft, vice president and chief economist of Freddie Mac.

"Thus, although mortgage rates have dropped, that doesn't necessarily indicate a trend," he also said.

Likewise, the average 15-year fixed rate mortgage (FRM) was down last week to 5.36 percent after peaking for the year last month at 5.58 percent. The 5/1 adjustable rate mortgage (ARM) averaged 5.22 percent last week, falling from a high this year of 5.43 percent.

Record Minority Home Ownership

The minority home ownership rate rose a record 51.6 percent during the first quarter of 2005, as 15.7 ethnic minorities claimed ownership of the roof over their heads, according to the U.S. Census Bureau.

Overall, home ownership was also at an all-time high in the first quarter, with 74.5 million American families now owning their own homes.

"These new numbers, combined with news that sales of previously-owned homes were near record levels last month, show that housing is still a leader as our economy continues to improve," said Housing and Urban Development Secretary Alphonso Jackson.

Two years ago, President George W. Bush challenged the nation to create 5.5 million new minority home owners by the end of the decade and since then, there has been a net increase of 2.3 million such home owners, 43 percent of the goal.

Future HUD efforts to further boost home ownership include mortgage insurance programs, tax credits of up to 50 percent of the cost of new construction, or rehabilitation, and more down payment assistance.

Vacation Home Accommodations

Dust off your vacation rental and roll out the red carpet.

A larger population of domestic travelers and the desire of travelers to own a rental home could mean big business for the vacation rental home industry in the U.S. this year.

Sixty-four percent of those surveyed in the annual Roper Reports/NOP World Summer Travel Outlook Study plan to take a vacation in the next six months, up from 58 percent in 2004.

Just 4 percent of them said they are going to Europe, down 2 points from last year. Forty-six percent are planning a trip more than 500 miles from home, but still within the continental United States, up 2 points from last year. Shorter domestic trips are down, however, with 33 percent saying they'll travel within 500 miles of home, a 3-point drop.

More people also would rather own a vacation home (58 percent) than own a beautifully decorated home (38 percent).

"It tells me the travel industry is strong and people will likely be renting vacation homes," said Christine Karpinski publisher of "How to Rent Vacation Properties by Owner" (Kinney Pollack Press, $26).

Agents Of God

These real estate agents will convert your listing to a sale, but they promise not to attempt to Bible-thump you into Christianity.

Agents who work for the Real Estate Christian Network, operating under the auspices of HisMove.com, say while they strictly adhere to fair housing regulations, they answer to an even higher authority. That means it's not just a legal matter, but also an act of faith when they offer services not just to Christians, but to anyone -- heathens included.

Just as there are real estate services operated by Muslims so their faithful can choose to adhere to Islamic financial principles, Bart Smith, CEO and founder says his agents and associated appraisers, property mangers and other real estate professionals of the Christian persuasion are available for those who may not want to join the flock, but who could use the power of prayer during negotiations.

In today's booming real estate market, while sellers may be blessed, buyers need all the help they can get.

Amen.

Published: April 28, 2005

Use of this article without permission is a violation of federal copyright laws.

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.