Nashville Real Estate Forum

Weekend Market Update

June 13-14, 2009

Treasuries and related instruments made a comeback on Thursday and Friday and reversed the recent rise of interest rates.

The quarterly Fed flow of funds report showed that U.S. consumers may be purchasing more Treasury debt than imagined, as household savings increased and tilted toward fixed income instruments. Conventional wisdom is that foreign central banks buy the Treasuries that cover most of the money the U.S. is printing, but the flow of funds report shows that American consumers are saving enough to fund the debt.

The report also showed that household holdings continued to drop in the first quarter as net household asset value dropped $1.3 trillion and home equity value dropped $450,000 billion. Some market watchers viewed this with a positive slant, however, as the fourth quarter of 2008 was much worse when households lost $4.8 trillion and $673 billion, respectively.

When the Treasury's auction of 30-year bonds brought plenty of buyers this week, related markets breathed a sigh of relief, thus turning mortgage rates and Treasury yields back down to end the week. The 10-year Treasury note closed at a yield of 3.79%, which was down week-over-week.

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 5/1 ARM (10% down, No MI)

5.2% $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

If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man.

-Mark Twain

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.)