Nashville Real Estate Forum

Weekend Market Update

March 27-28, 2010

Mortgage rates were under upward pressure for most of the week, although on Friday mortgage-backed securities got a boost as rates continue in this trough of historic lows.

The FNMA 4.5% contract was up by 32 bps on Friday, but was down 41 basis points for the week (which means on average that it cost borrowers .41% of the loan amount to achieve the same rate they got a week ago.) A point in mortgage rate pricing is 1% of the loan amount, and 100 basis points (bps) in securities trading equal a full point in mortgage pricing.

A tepid response to three Treasury auctions this week underscored that interest rates eventually will have to rise on Treasury issues to attract a sufficient number of buyers. Hey, the Chinese can only buy so many Treasury notes.

President Obama announced programs to help existing homeowners avoid foreclosure. The programs will be funded from the $700 billion TARP (Troubled Asset Relief Program). RealtyTrac Inc., a California-based research firm, reported that foreclosures are expected to climb to 4.5 million this year, up from 2.8 million last year.

FHA mortgage insurance premiums increase April 5. If you have any buyers who are close, and who need a local MORTGAGE BANKER (not a broker) WITH IN-HOUSE UNDERWRITING to get a sale closed smoothly and quickly, call me, and I can get your customer situated and get a pre-approval letter to help you negotiate with a seller. So long as we order the FHA case number by April 4, it’s all good.

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30-Year Conventional Fixed

4.875% $100,000-$417,000


FHA-100% VA

5% $100,000-$393,300


30-Year Jumbo Fixed

5.875% $417,001-$900,000

(Interest-only available-Call me)

THDA Great Start

5.58% $100,000-$393,300

4% of sales price Gift

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

"No problem can be solved until it is reduced to some simple form. The changing of a vague difficulty into a specific, concrete form is a very essential element in thinking." - J.P. Morgan

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 consumers and Realtors on market trends and is not a quote for a unique borrower.)