Nashville Real Estate Forum

Weekend Market Update

May 12-13, 2007

Tame inflation data gave investors an excuse to buy stocks on Friday, but Treasuries and mortgage rates did not benefit. The Dow Jones average of large-cap stocks rose by 111 points and continued its upward tear since a selloff in February. The 10-year Treasury rose in yield to 4.67%, which was enough of a hiccup to cause our investors to flinch and put out a late-day rate/price worsening. The PPI, a measure of producer prices, increased 0.7 percent in April, topping most forecasts on Wall Street. But the so-called core PPI, which strips out volatile food and energy prices, was unchanged, versus forecasts for a rise of 0.2 percent. Low inflation news usually benefits Treasuries. The Fed met this week and left its short-term rate unchanged, but, as usual, issued saber-rattling language saying they remained worried about inflation not moderating quickly enough. Mortgage rates have remained remarkably steady all year, thus continuing an historic opportunity for buyers and sellers.

30-Year Conventional Fixed

6% $100,000-$417,000

FHA-VA

6% $100,000-$226,100 (VA to $417,000)

Jumbo 30-Year Fixed

6.25% $417,000-$1,000,000

My Community 100%

6.625% $100,000-$417,000

Tennessee Housing Development Agency*

5.4% Great Rate 6.4% 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.)

Cell: 615-579-8658   Fax: 615-373-9879

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