Nashville Real Estate Forum

Weekend Market Update

July 25-26, 2009

“Less bad” is the new good for the housing market, which continues to display weakness but at a slowing pace. The rate of house price decline is slowing, inventories are declining and affordability is the highest ever.

Continuing to weigh on the housing market, however, are job losses, increasing numbers of foreclosures and soaring delinquencies.

Major stock indices closed at fresh highs for 2009 on Friday, despite heavy selling in Microsoft after the software behemoth reported quarterly sales that were short by a $1 billion of analysts’ estimates. It was the first-ever decline in annual sales of the Windows operating system. Microsoft’s selling influenced other tech stocks and caused the Nasdaq to break its 12-session streak of successively higher closes.

The Nasdaq runup was the longest unbroken string of gains since 1992. For the week all major indices---the Dow, S&P 500 and Nasdaq---were higher by about 4%. Alan Blinder, former vice chair of the Federal Reserve, chipped in his two cents worth to say that the economy has bottomed.

The Dow and S&P hit closing levels last touched in early November, 2008. The S&P recorded a 12-year closing low on March 9 at 676.53. It is up 44.7% on the year, and closed Friday at 979. The Dow is up 39% for the year and closed at 9,093.

The 10-year Treasury closed yielding 3.67%. Mortgage rates have been under slight upward pressure this week as money moved into stocks and away from Treasuries and mortgage-backed securities.

30-Year Conventional Fixed
5.25% $200,000-$417,000

FHA-100% VA
5.5% $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

“When a person can no longer laugh at himself, it is time for others to laugh at him.” --Thomas Szasz

Visit my real estate website:

http://www.REALCarte.com

Visit my mortgage website:

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.)