Nashville Real Estate Forum

Weekend Market Update

April 4-5, 2009

The Dow Jones stock average closed above 8,000 and completed a four-week upswing despite a government unemployment report that showed the U.S. lost 663,000 jobs in March. Stocks have bounced more than 21% in the last four weeks, but that measure comes against bear-market lows hit in March.

The U.S. economy has shed more than 5.1 million jobs since December, 2007. The unemployment rate is now 8.5%, the highest since November, 1983.

Money moved out of the relative safety of Treasuries, and the 10-year yield rose to 2.96% at Friday’s close.

Mortgage interest rates remain in a range of historical lows and present once-in-a-lifetime opportunities to buyers and refinancing homeowners. First-time buyers can get a gift of up to $8,000 from Treasury if they buy before December.

Loan guidelines continue to tighten, although I thought we were through with that at the end of 2008, when lenders and everyone had no less news and information about the market than we have today. Those of you who read my “Tips from the Trenches” advice column for Realtors and builders may recall a column I did in 2003 entitled “The Loan Candy Store.” At that time I cited loan programs that almost seemed too good to be true for borrowers who either had no downpayment or who could not document income.

As reaction to the mortgage debacle which began in the summer of 2007, lenders and government institutions have in some cases now swung too far in the other direction. Not only do loan guidelines continue to trend toward requiring more downpayment, higher credit scores, lower debt ratios and more thorough documentation of income, but the mortgage insurance companies have now gotten fully in the act and are killing loans that lenders and Fannie Mae guidelines accept.

So, in order to get a loan approved, we have to hit agency guidelines, the individual lenders’ overlays of further limitations and the MI companies’ guidelines which further tighten the rules. And, guidelines are changing from one day to the next. Do not expect that if you ask me a question on Tuesday that by breakfast on Wednesday the answer will still be good.

On the plus side, did I mention that rates are at scorching lows and that we have the experience and expertise to make things happen for many situations that baffle others?

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)

5.45% $417,001-$600,000

30-Year Super Jumbo Fixed

6.4 % $750,000-$1,500,000

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

"The market can stay irrational longer than you can stay solvent."

- John Maynard Keynes

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.)