Nashville Real Estate Forum

Although global turmoil was no less an issue than the last Friday of January when stocks sold off broadly, markets reversed themselves this past week as stocks rose and Treasuries and interest rate sensitive issues dropped in price and rose in yield and rate.

The markets somehow talked themselves out of the fear that was in abundance last week, when Egyptians were in the streets trying to take down dictator Hosni Mubarak; money then moved out of stocks and into the safer play of Treasuries. While this week protestors met with violence and the cutting off of Internet, phone, TV and radio communications by the government, U.S. markets grew unafraid and were focusing on the positives in earnings and improving data on manufacturing and productivity.

The Dow Jones Industrials closed above 12,000 (12,092) and the S&P 500 above 1,300 (1,311) for the first time since 2008.

Often a market-moving event, the monthly government jobs report showed a surprisingly low new jobs number of 36,000 added to U.S. payrolls in January as well as a surprisingly improved unemployment number, down to 9%. Investors and players scratched their heads for a while and then resumed buying.

Bad weather in January was blamed for both figures which were considered aberrations. However, stocks could have easily taken a different turn. When markets move in a direction that is against the news, it is a strong signal. So, with earnings running at a pace of 72% beating expectations, stocks are poised to go higher as Walt Disney, Cisco, Kraft and Coke report next week.

The 10-year Treasury closed up in yield at 3.65% and broke out of a 3.3% to 3.5% channel which had held since mid-December. This technical pattern indicates that interest rates will move up from here (while prices of bonds declines); this complements stock action, which is trending up. Stocks often move in the opposite direction of Treasuries and mortgage-backeds; a good day for one is a bad day for the other, more often than not.

That was the highest closing yield for the 10-year since May 3. After moving sideways for most of January, mortgage interest rates got back on the intermediate-term trend of moving higher and were repriced for the worse twice on Friday.

Contact me to prepare for homeowners a refinance scenario, or to pre-approve a prospective buyer or to provide marketing tools for Realtors and Builders. Gary Moore 615-579-8658, email Gary@BrentwoodHomeLoan.com.

First Community Mortgage is part of a locally owned community bank, and we control the loan process in-house as we underwrite all conforming and government loans. We fund the closings with our money, so no one has to wait on a distant wholesale division of a massive, national corporation to send funds.

30-Year Conventional Fixed

5% $200,000-$417,000

15-Year Conventional Fixed

4.25% $200,000-$417,000


30-Year FHA-100% VA

4.75% $100,000-$393,300


30-Year Jumbo Fixed

5.5% $417,001-$900,000

(Interest-only available-Call me)

THDA Great Start

4.85% $100,000-$393,300

4% of sales price Gift

Call for free pre-approval and to discover

the best financing for you!

...by Gary Moore

Mortgage Planner, First Community Mortgage

...a subsidiary of First Community Bank

Cell: 615-579-8658 Toll-free fax: 866-321-6513

Quote of the Day

"Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young. The greatest thing in life is to keep your mind young." - Henry Ford

Visit my real estate website:

http://www.RealCarte.com

Visit my mortgage website:

http://www.BrentwoodHomeLoan.com

(0% points, 1% origination. Market Update informs consumers and Realtors on market trends, offers subjective opinions and is not a quote for a unique borrower. Reply "remove" with your name and email address to discontinue Update.)