THE ECONOMY.(TO THE POINT)

Mortgage rates hit 5-month low

With inflation tame and concerns about a slow recovery, the 30-year fixed mortgage fell 9 basis points to 6.78%, Freddie Mac said. The 15-year rate fell 9 points to 6.26%. The one-year adjustable slid 16 points to 4.75%, an eight-year low.

Trade panel OKs lumber tariffs

The U.S. International Trade Commission gave a final OK to tariffs of 27% on Canadian softwood lumber used in new homes. The move, which cuts a tariff imposed in Aug., penalizes the Canadian industry for selling lumber in the U.S. at artificially low prices. But it could add $1,500 to the cost of a new home.

City office vacancies rise in Q1

The U.S. downtown vacancy rate rose to 13.2% -- a five-year high, says property manager Cushman & Wakefield. That's up from 12% at the end of '01 and 8.3% a year ago. In San Francisco, the vacancy rate hit 24.4%. The average rent for downtown Manhattan office space fell to $43.75 a square foot vs. $48.77 in '01 and $52.37 in '00.

"Star Wars' could cause sick days