Nashville Real Estate Forum

Weekend Market Update

Aug. 1-2, 2009

Stocks ended July as one of the strongest months ever for major indexes, and interest rates softened in the last week of the month---a “combo plate” that usually does not get served up by the markets. Strength in stocks usually correlates with weakness in Treasuries and mortgage-backed securities, and vice versa.

The Gross Domestic Product for the second quarter showed the economy shrank 1%, which was below analysts’ forecasts, and thus supported stocks. The GDP for the first quarter was revised to a decline of 6.4%.

Dow stocks rose cumulatively 725 points in July, or 8.6%, for the large-cap index’s best month since October 2002 and its best July since 1989. The S&P 500 is knocking on the door of the 1,000 level and had its strongest July since 1997.

Despite stocks favoring the “less bad” is good news scenario, there is plenty for the market to worry about, such as unemployment and the still weak housing market. Unemployment is at 9.5%, a 26-year high, and the Federal Reserve estimates it will hit 10% before the year is out.

The 10-year Treasury closed at a yield of 3.5%, a mark around which it has been hovering for most of July.

30-Year Conventional Fixed
5% $200,000-$417,000

FHA-100% VA
5.25% $100,000-$393,300

100% Guaranteed Rural Housing w/no MI

6% $100,000-$417,000

30-Year Jumbo Fixed

6% $417,001-$1,000,000

30-Year Jumbo 5/1 ARM (15% down, No MI)

5.25% $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

"The modern mind dislikes gold because it blurts out unpleasant truths."

- Joseph Schumpeter

Visit my real estate website:

http://www.REALCarte.com

Visit my mortgage website:

http://www.BrentwoodHomeLoan.com