Nashville Real Estate Forum

Weekend Market Update

Jan. 26-27, 2008

Financial markets ended a turbulent week—and it was only a 4-day week after Martin Luther King Day on Monday—with stocks selling and money moving back into the safety of Treasuries. As is often the case, a bad day for stocks can be a good day for bonds and mortgage rates, and vice versa. The Fed cut its short-term rate this week by .75% to calm markets worried about a slowing economy and continuing fallout from the credit crisis. Mortgage rates spiked down on Wednesday morning, pulled back after the Fed action boosted stocks, and closed the week with a 30-year conforming loan still under 6%. The 10-year Treasury, which correlates more closely than any Treasury instrument with movements of mortgage-backed securities, closed at a yield of under 3.6%, unchanged week-over-week after much commotion.

30-Year Conventional Fixed

5.5% $100,000-$417,000

FHA-VA

6% $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. Rates subject to change and program guidelines.)

Cell: 615-579-8658 Fax: 615-309-8993

"It is a capital mistake to theorize before one has data." - Sir Arthur Conan Doyle

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