Nashville Real Estate Forum

Weekend Market Update

April 18-19, 2009

Mortgage interest rates were pushed in both directions this week but remained in the ongoing range of historic lows. Strengths in stocks and commodities---including copper and oil which moved back over $50 a barrel---went against a low-rate scenario at the end of the week, while reports of continuing economic weakness made a case for low inflation and supported low rates.

The most impacting news early in the week for bonds and mortgage rates were two government reports: The Commerce Department said that sales at retail establishments in the U.S. fell 1.1% last month. The second report was March's Producer Price Index (PPI), which fell 1.2% when it was expected to remain unchanged from February's level. Market watchers had expected better results for both sets of data. This eases inflation concerns and makes bonds and mortgage-backed securities more appealing to investors.

Later in the week, when earnings reports from major corporations were not so gloomy as had been imagined and when the University of Michigan’s consumer sentiment index showed an upturn, it put wind in the sails of stocks. After earnings reports from General Electric, Google and Citigroup on Friday, the market notched its sixth straight week of gains.

The 10-year Treasury closed at a yield of 2.93%.

30-Year Conventional Fixed
4.75% $200,000-$417,000

FHA-100% VA
5% $100,000-$393,300

100% Guaranteed Rural Housing w/no MI

5.25% $100,000-$417,000

30-Year Jumbo 3/1 ARM (10% down, No MI)

4.6% $417,001-$900,000

(Interest-only available—Call me)

Call for free pre-approval and to discover

the best financing for you!

...by Gary Moore

Cell: 615-579-8658 Toll-free fax: 866-321-6513

“We make a living by what we get; we make a life by what we give.” –Sir Winston Churchill

Visit my mortgage website:

http://www.BrentwoodHomeLoan.com

(0% points, 1% origination, subject to program and lock period. Market Update informs on market trends and is not a quote for a unique borrower.)