Nashville Real Estate Forum

Weekend Market Update

June 14-15, 2008

Stocks ended a turbulent week with a sharp gain on Friday after government readings on inflation eased worries about the effect of rising prices on consumers, and Treasuries regained some footing after a week-long run-up in interest rates. The Labor Department said the Consumer Price Index rose a sharp 0.6% in May, but the so-called core prices, which exclude food and energy, edged up a more modest 0.2%.

The markets chose to view the glass as half full, and seized on the relative stability in core prices to boost stocks and make a case for the Fed not raising short-term rates any time soon. Fed officials sparked selling earlier in the week by worrying publicly about inflation and reminding all that their job was to raise rates to stifle inflation. The Dow index gained 165 points.

Treasuries had been pounded this week, with the 10-year hitting its high in yield for the year at 4.26%. I had signaled on Tuesday in my "Red Alert on Rates" that bond yields and mortgage rates were galloping upward. Friday's action tempered those rate increases, although mortgage rates increased by about .375% for the week.

U.S. home foreclosure filings in May increased from April and were a whopping 48% higher than a year earlier, real estate data firm RealTrac said on Friday.

30-Year Conventional Fixed

6.375% $200,000-$432,500

FHA-VA

6.5 % $100,000-$432,500

Guaranteed Rural Housing w/no MI

6.75% $100,000-$432,500

30-Year Conventional w/no Borrower MI

6.75% $100,000-$432,500

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

"It's never too late." -Anonymous

Visit my website: http://BrentwoodHomeLoan.com

(0% points, 1% origination, 30-day lock. Market Update informs on market trends and is not a quote for a unique borrower.)