Nashville Real Estate Forum

Weekend Market Update

Oct. 31-Nov. 1, 2009

Stocks sold off across the board on heavy volume on Friday, and the VIX (volatility index) closed above 30, its highest level in four months. The Dow Jones average of large-cap stocks shed 250 points on the day after a triple-digit gain on Thursday. Increasing volatility typically accompanies a selling market. During October, the Dow had 10 days of double-digit moves. As we noted here last week, the Dow has sputtered after touching the 10,000 mark, and in the absence of traction, the short-term view is for more selling in those and broader market equities.

Treasuries and mortgage-backed securities benefited from money running from stocks and into safer plays. Setting off Friday's session was data showing that spending by Americans fell 0.5% in September, the largest drop since December 2008, while consumer confidence in October also slipped. The downturn began in the morning and selling increased as the day wore on in what traders called a herd mentality. Financial issues were hit hardest as Bank of America dropped 7.3% and JPMorgan Chase lost 5.8%.

The 10-year Treasury closed at a yield of 3.39%.

30-Year Conventional Fixed
4.875% $100,000-$417,000

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

100% Guaranteed Rural Housing w/no MI

6% $100,000-$417,000

30-Year Jumbo Fixed

6% $417,001-$1,000,000

30-Year Jumbo 5/1 ARM (15% down, No MI)

5.25% $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 significance of man is that he is insignificant and is aware of it." -Carl Becker

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. Reply "remove" with your name and email to discontinue Update.)