As the new year arrives, I find it helpful to review the year that just ended. 2007 was a very positive year. In fact, had the two preceding years not been so stellar, 2007 may have been hailed as an excellent year for real estate.

Mortgage Rates

By long term trends, 2007 interest rates were extremely low. The Federal Reserve Board lowered rates an aggressive half-point in September to 4.75% "to foster price stability and sustainable economic growth." The pool of home buyers is smaller but more qualified to make good on their loans.

Housing Demand

While 2007 didn’t match 2005 and 2006 in housing sales volume, it was still the fifth best housing sales market in history. Houses were being bought and sold while solid mortgage loans were being made throughout the year.

The Economy

Unemployment held low and steady at 4.6% for the previous two years. To put that fact in context, that’s better than all but three years in the last 30. U.S. personal income held steady in 2007.

There were definitely great things happening in the real estate market in 2007. Here’s to an even brighter 2008.