Nashville Real Estate Forum

Weekend Market Update

July 7-8, 2007

Bond yields rose and so did mortgage rates as the government reported strong employment data. Stocks finished up to end the holiday-broken week. Government figures showed that 132,000 workers joined non-farm payrolls in June; economists had expected 125,000 jobs would be created. The unemployment rate remained at 4.5%, and average hourly earnings, a key inflation barometer, rose .3%. Both matched consensus estimates. Job growth for the prior two months was revised sharply upward, however, and the government said 75,000 more employees were put to work in April and May than had been first estimated. The 10-year Treasury was yielding 5.19% at the market’s close, after dipping below 5% earlier in the week. Janet Yellen, president of the Federal Reserve Bank of San Francisco, said during a speech that the central bank's main concern should remain inflation, continuing the theme that other officials have stressed for months. She also indicated that keeping rates steady would allow for growth and at the same time keep prices from rising too far, too fast. The Fed has kept its rate steady since June, 2006.

30-Year Conventional Fixed

6.625% $100,000-$417,000

FHA-VA

6.625% $100,000-$226,100 (VA to $417,000)

Jumbo 30-Year Fixed

6.75% $417,000-$1,000,000

My Community 100%

7.375% $100,000-$417,000

Tennessee Housing Development Agency*

5.7% Great Rate 6.7% Great Start *Call for loan limits, guidelines

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