Biz bits

Luxury homebuilder posts millions in loss

Toll Brothers Inc.'s stock tumbled Thursday after the luxury homebuilder reported a disappointing year-end loss and said it expects its sales in fiscal 2010 to decline at least 7 percent.

CEO Robert Toll said homebuyer demand was strong from March through August, but has been "choppy" since then. He also said he expects to see the usual holiday slowdown in prospective shoppers, and little help from the homebuyers' federal tax credit.

The cautious outlook from Toll, which builds in 21 states, including Georgia and South Carolina, runs counter to industry trends.

New home sales have increased six out of the past seven months, according to data.

The Horsham, Pa.-based builder lost $111.4 million between August and October

FedEx will raise home delivery, ground rates

NEW YORK --- FedEx Corp. said Thursday it will raise shipping rates for its Ground and Home Delivery units by an average of 4.9 percent in 2010 -- 1 percentage point less than this year's rate hike.

FedEx announced in September it will increase shipping rates for Express packages shipped within or from the U.S. by an average of 5.9 percent in 2010, also 1 percentage point lower than FedEx's rate increase this year. All of the rate increases will go into effect on Jan. 4.

Mortgage interest rate hits record low

WASHINGTON --- The average interest rate for a 30-year mortgage dropped to a record low of 4.71 percent this week, pushed down by an aggressive government campaign to reduce borrowing costs.

The rate, published Thursday by Freddie Mac, is the lowest since the mortgage finance company began tracking the data in 1971. The previous record of 4.78 percent was set during the week ending April 30 and matched last week.

The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring.

The goal of the program is to make home buying more affordable and prop up the housing market.