Nashville Real Estate Forum

Weekend Market Update

Aug. 29-30, 2009

Like a box of Cracker Jacks, there is a surprise inside this week’s Market Update. Read on.

Stocks fell slightly on Friday but still closed up for the week in light trading. Despite the Friday weakness, the major indexes remain in the black for August. The S&P 500 and Dow industrials are up about 4% for the month, largely thanks to a big rally across financial stocks, while the Nasdaq Composite is up about 2.4% on the month.

The market’s appetite for risk is up as evidenced by buying in formerly flattened, government-propped equities, such as AIG and Fannie Mae. American International Group was up 50% for the week. Some traders, however, in staring at September---which is historically the worst month of the year for stocks---were pulling back and locking gains. Many market watchers are looking for a pullback to a former resistance level---or at best a flat line in the near term.

Among economic data released Friday, the latest Reuters/University of Michigan reading of consumer sentiment slipped to 65.7 in August, down from 66.0 in July. New data from the Commerce Department showed that consumer spending rose mildly in July, but personal income was unchanged.

The 10-year Treasury note was down in yield and closed at 3.45% on Friday. This instrument, which generally correlates with mortgage-backed securities, has been closely hugging the 3.5% yield zone since July 1.

Here is the “surprise”---sorry, it’s not free money, but a little mortgage biz humor:

A Loan Officer died and met St. Peter at the Pearly Gates to present himself for admittance to Heaven.

Peter said, "You did a lot of good helping people get into homes, and you donated a lot to charity. You even worked on that Habitat house. But you told too many fibs to the underwriters and were very unkind to your processor and office staff.

“We aren't sure where you're going to fit...so, we've decided to show you around both Heaven and Hell and see where you feel comfortable."

As they toured Heaven, the Loan Officer really liked the big mansions and the streets paved with gold, but the harp music did get on his nerves a little.

Then, when they showed him around Hell, he noticed everyone had their choice of playing golf or tennis, hanging out by the pool smoking and drinking, or dancing and playing cards in the clubhouse. He told St. Peter, "Oh, this is going to be hard. Can I sleep on it?"

So, he was allowed to think it over during the night. The next morning they asked for his decision. He quickly replied, "Oh, please, send me to Hell!"

They opened up the doors of Hell, but the whole picture had changed. It was just like you have always heard with lots of fire and brimstone. People were burning and being tortured and screaming. It was hot and horrible.

"Hey, that's not what you showed me!" the Loan Officer cried.

St. Peter's reply was cold and abrupt: "I know; you should have 'locked’’ yesterday."

---from Courtney Snyder, my assistant

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

"It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something." - Franklin D. Roosevelt

Visit my real estate website:

http://www.REALCarte.com

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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.)