This is how Word works in Word 2013 and later. It has been the subject of many complaints. It is unlikely to be changed in Word 2013 or 2016 and Microsoft seems less than eager to try to change it back in the future.

See Text Boundaries Display in Microsoft Word.
Here is a link from that page to two templates that provide a sort of workaround.
Here is a link from that page to a lengthy knowledgeable discussion of this with other workarounds.

You can register your feeling directly with Microsoft here.
http://word.uservoice.com/forums/304...ext-boundaries
If you vote, please add a comment and let them know how you really feel!