Nashville Real Estate Forum

Weekend Market Update

Sept. 26-27, 2009

Stocks fell for the week but remain on track to escape September--- historically the worst month for stocks---in positive territory. Mortgage-backed securities were supported with buyers which kept mortgage rates at or below 5%. The 10-year Treasury closed the week yielding 3.3%, which represented a decline week-over-week.

The rally in stocks, which stumbled in recent days on worries about the economic recovery and continued government stimulus, will be tested next week by crucial data on growth and jobs. Investors are set to pore over September non-farm payrolls, the final reading of second-quarter gross domestic product and several other big economic reports.

The data comes amid signs the rally in stocks, which has lifted the Standard & Poor's 500 index some 54 percent since early March, could be fizzling out.

The market suffered three straight days of losses, and the S&P put in its biggest weekly drop since early July, with data on Friday showing new orders for long-lasting U.S. manufactured goods falling by their biggest margin in seven months.

Next week, the focus likely will be on Friday's monthly U.S. government jobs data. The 9.7 percent U.S. unemployment rate is a major concern for investors because of the impact on the economy and, in particular, consumer spending.

For the week, the S&P 500 fell 2.2 percent, the Dow Jones industrial average dropped 1.6 percent and the Nasdaq declined 2 percent.

On Thursday, stocks slid as world central banks said they would scale back infusions of U.S. dollars into their banking systems. That came a day after stocks sold off following the Fed's decision to slow purchases of mortgage debt.

But the S&P 500 is still on track for gains of about 14 percent this quarter, and that would follow gains of 15 percent in the previous quarter.

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

"Fish see the bait, but not the hook; men see the profit, but not the peril." - Chinese Proverb

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.)