Before there was a Seaside and Celebration, Fla., before Laguna West, now in Elk Grove, and before "smart growth" and "new urbanism," there was Heritage Wood Circle in Sacramento's Pocket.

In the annals of celebrated 1980s alternatives to suburbia, the neighborhood has gone largely unheralded. But on its quiet Pocket circle, the 35-home development of Cape Cod architecture, white picket fences and skinny streets to calm traffic turns 29 this year.

"I'm from the East Coast, so I saw this architecture and loved it," said Jane Smith- Oxnaes, who has lived there since 1996. She's the third-longest resident now, she believes. "You sit in the street, and it feels like it should be snowing."

That's no exaggeration. In the vast look-alike landscape of Sacramento-area housing, Heritage Wood Circle, just off Greenhaven Drive, is a scenic surprise. Thousands of capital residents have driven in there on their house-hunting trips. (Yes, that place. Remember?) It's quaint. It's nostalgic. Home values range from $315,000 to $466,000, according to online evaluator Zillow.com. The last sale, in July, brought $418,000.

The enclave has a story, though, behind its big London plane trees and cozy layout to make you wonder how it's managed to last.

Some of the founders are dead. Before it was finished, part of the circle went back to the old Bank of Alex Brown or possibly a savings and loan – memories are sketchy over which. Then, after its 1980 opening at the start of a housing slump, with interest rates averaging 13.7 percent to 16.6 percent (plus two points), there were construction defect lawsuits.

"It was a nice concept," said Bob Del Ponte, a real estate veteran who helped sell the first houses there and still works as a Pocket builder-broker. He is developing the residential project Villa Bignasco at Lake Greenhaven Shores. "The sales were fair. The problem they ran into was they got some bad siding, and the siding started to wave. There was some fault in the construction and the wood. Then sales kind of went bad."

Now, that's largely history. Most homes in Heritage Wood Circle have new vinyl siding. And owners like Smith-Oxnaes say they've spent their share of money on repairs and remodels inside, too.

As Del Ponte tells it, the late attorney-developer Kent Walker and builder-developer Lee Basford, still living, wanted to create a Land Park-style neighborhood on the site. (Walker told The Bee in 1989 he wanted to copy the country look of Markham Street in Curtis Park). Garages would be in back instead of attached to the house, as was common.

But the two sold their six acres to a threesome who came up with Cape Cod and white picket fences. As Del Ponte remembers, the new team included Sacramento loan broker Charles Hudson, now dead. Del Ponte was not sure of the names of the other two.

Almost three decades later, Heritage Wood Circle's main social function is a July 4 block party. The neighborhood is social, though not a place of constant potlucks and gatherings as the architecture might suggest. But it's neighborly enough that Donna Davis, granddaughter of Smith-Oxnaes, can name the residents of many homes.

Meanwhile, the codes, covenants and restrictions that govern appearances "are pretty strict," said resident Mitchell Harter. "Keeping it thematic seems to be the goal."

It's working so far. For all the capital's housing troubles, there's not one for-sale sign on Heritage Wood Circle.

Interest rates still declining

Interest rates are still falling. This week marked a 10th straight week of declines, as rates averaged 5.01 percent for 30-year fixed loans, federal mortgage giant Freddie Mac said Thursday. That was down from 5.10 percent last week.

Averages for 15-year fixed loans were 4.62 percent – down from 4.83 percent last week.

Freddie Mac chief economist Frank Nothaft attributed the declines to Federal Reserve plans to buy $500 billion in mortgage-backed securities from Freddie Mac, Fannie Mae and Ginnie Mae.

Foreclosure event planned

Borrowers struggling with mortgages should mark their calendars for Monday, Feb. 2. The Sacramento Housing and Redevelopment Agency will host a free mortgage default and foreclosure prevention event at the José Rizal Community Center, 7320 Florin Mall Road in Sacramento.

The event is for people with loans from Washington Mutual, JPMorgan Chase, National City or Wells Fargo and Wachovia, SHRA announced. Hours are 2 p.m. to 8 p.m.

The agency said lenders aim to start loan modifications for eligible borrowers. Lenders may be able to delay the foreclosure process for those who aren't eligible, said the agency.

Borrowers should bring loan documents and financial information for one-on-one sessions on a first-come first-served basis. More information: (916) 440-1399, ext. 1226.

Call The Bee's Jim Wasserman, (916) 321-1102. Read his blog on real estate, Home Front, at www.sacbee.com/blogs.