Nashville Real Estate Forum

Weekend Market Update

Feb. 2-3, 2008

Mortgage rates settled back down after turning up during the news flurry over the Fed easing its short-term rate by 1.25% over the past two weeks. Money moved back into the recently battered stock market and thus moved out of Treasuries and mortgage-backed securities for a week’s worth of trading sessions, causing rates to rise. While there is a general correlation between the Fed funds rate and mortgage rates, I am forever telling people that the two do not move in lock-step; in fact, when the Fed drops, mortgage rates often go up as they did recently. A TV news reporter scheduled an interview with me last fall and then canceled at the last minute after she told her boss that I was not going to say mortgage rates drop automatically when the Fed eases. Prime rate moves with the Fed, and prime is now at 6% with most banks.

30-Year Conventional Fixed

5.375% $100,000-$417,000

FHA-VA

5.75% $100,000-$226,100 (VA to $417,000)

Jumbo 30-Year Fixed

6.5% $417,000-$1,000,000

Flex 100%

6% $100,000-$417,000

...by Gary Moore

(0% points, 1% origination, 30-day lock. Rate pricing subject to change, borrower particulars, and program guidelines.)

Cell: 615-579-8658 Fax: 866-321-6513

"Years of practice enable the trader to act on the instant when the unexpected happens as well as when the expected comes to pass." - Jesse Livermore

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