On Friady, March 5, 2004, Mortgage rates returned to near 30 year lows. The big number out on Friday was the jobs number and it was far weaker than expected once again. This is not so good for the Bush administration, but for all potential homebuyers this news keeps interest rates low! Had the jobs number beat expectations, rates were expected to rise by as much as 1/4 to a 1/2 a point, instead they fell back an 1/8 of a point.

NEW YORK, March 5 (Reuters) – The average rate on a 30-year U.S. mortgage with no upfront points fell 1/8 of a percentage point on Friday to 5-5/8 percent, according to BestInfo, Inc.

The 30-year mortgage rate with one upfront point fell 1/8 of a point to 5-3/8 percent.

The 30-year mortgage rate with two upfront points fell 1/8 of point to 5-1/8 percent.

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.

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