Nashville Real Estate Forum

Weekend Market Update

May 2-3, 2009

The 10-year Treasury closed at a yield of 3.12% on Friday, its highest point since Nov. 24, 2008, about the time that mortgage interest rates began their avalanche to record lows. This and other market action could be signaling that the bottom has been put in for low mortgage rates, and that stocks are getting consistent---if not vigorous---support.

The Federal Open Market Committee met this week and did not change its rock-bottom (0%-.25%) Fed funds rate. The Fed did reiterate the theme of economic weakness on Wednesday, but said while the economy is continuing to decline, the rate of decline may be slowing. When the Gross Domestic Product report came out on Wednesday, prior to the Fed meeting, it contradicted the Fed's announced theme as fourth-quarter GDP fell at an annual rate of 6.1%, while market watchers were expecting a 4.7% decline.

Thirsty for good news---even if it sounded like just less bad news---major stock indices closed up week-over-week for the seventh time in the past eight weeks. When markets trade in a direction opposite the common logic of the news---or when they move on the most flimsy of evidence or if markets seem to pick and choose---it is a confirming signal of direction.

Bond markets may be looking ahead to next week when the government will sell a record $71 billion in debt, in the form of two-year, 10-year and 30-year Treasuries in its May refunding.

30-Year Conventional Fixed
4.75% $200,000-$417,000

FHA-100% VA
5% $100,000-$393,300

100% Guaranteed Rural Housing w/no MI

5.25% $100,000-$417,000

30-Year Jumbo 3/1 ARM (10% down, No MI)

4.6% $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

"The charm of history and its enigmatic lesson consist in the fact that, from age to age, nothing changes and yet everything is completely different." - Aldous Huxley

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.)