How to make a static page the homepage of your site in WordPress
By default, the frontpage/homepage of a WordPress site displays the ten most recent posts. When a new post is published it's automatically put at the top of the homepage, so that it's the first post in the list.
If you want to, you can create a separate static page and set that page to be the homepage of your site. In the admin panel there's an option with which you can do just that. After you log in go to Settings menu>Reading sub-menu. On the page that opens there's a group of radio buttons and drop-down menus labeled Front page displays. By default, the radio button Your latest posts is marked. To set a static page to be the homepage, mark the radio button A static page and from the drop-down menu Front page that's under it select one of the static pages that you've created.
There's another drop-down menu called Posts page. When you set a static page to be the frontpage of your site there won't be a page that shows the latest posts. People will be able to view the different posts by going to category pages, tag pages, archive pages, etc. If, however, you want to have a page that shows the most recent posts regardless of the categories to which they belong, select that page from the drop-down menu Posts page. If the selected static page has some content, it won't be shown. Only the most recent posts will be displayed by that page.
When you're done don't forget to click on the Save Changes button at the bottom of the page.
For more details on the reading settings in the admin panel check out the tutorial on how to manage the reading settings in WordPress. For more information on adding and managing static pages read the tutorial on how to manage pages in WordPress.