Nashville Real Estate Forum

Weekend Market Update

Aug. 15-16, 2009

Lenders were whip-sawed by bond markets on Friday, dropping mortgage interest rates in the morning and then changing course and pushing rate pricing a hair higher in the afternoon. We put out a “rate alert” at 11:02 a.m. to lock any unlocked borrowers, and that observation precisely tracked the market moves---catching the mid-morning drop and dodging the late-afternoon price deterioration.

Rates eased slightly this week, continuing to be held down by a weak economy and low or no inflation. Friday afternoon’s reversal was a pre-weekend reflex to the bond market having traded in one direction for most of the week.

For those of you who are watching the bigger picture---and I hope this is all of you---rates remain in a multi-year channel of historic lows. The daily and weekly small moves are merely background noise. Favorable interest rates and large inventories of properties for sale make this an optimum time to purchase or refinance real estate.

Consumer sentiment weighed on stocks as the University of Michigan reported a drop from 66 in July to 63.2 in August, which the markets believe foretells the level of consumer buying. Major stock market indices broke their four-week winning streak. The 10-year Treasury closed at a yield of 3.56%.

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 Stone Age didn't end because they ran out of stones; the Oil Age won't end because we run out of oil." - Don Huberts

Visit my real estate website:

http://www.REALCarte.com

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.)