Weekend Market Update

June 16-17, 2007

Treasury yields and mortgage interest rates finally took a break from their spring spurt upward as moderate inflation data soothed the markets in Friday’s trading. The government reported the Consumer Price Index, a measure of inflation at the retail level, rose 0.7 percent in May, while the more closely watched core CPI, which strips out food and energy prices, rose just 0.1 percent, which was lower than forecast. Treasury prices rose and yields cooled on the 10-year note, which closed at a yield of 5.17%. The 10-year yield had hit a five-year high earlier in the week at 5.32%. Stocks were strong for the week and also reacted well to low-inflation news. The Nasdaq index hit a six-year high, while the Dow and S&P 500 indices rallied after a shallow sell-off earlier this month.

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

6.875% $417,000-$1,000,000

My Community 100%

7% $100,000-$417,000

Tennessee Housing Development Agency*

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

...by Gary Moore

(0% points, 1% origination, 30-day lock. Rate pricing is subject to change and to program guidelines.)

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