Nashville Real Estate Forum

Weekend Market Update

June 20-21, 2009

Major stock indices were down for the week, and markets next week will be looking for clues from housing data and the Fed's statement about interest rates and the economy after the FOMC meeting.

Mortgage rates were choppy within a narrow channel this past week, but the path of least resistance is now up. Lenders are suddenly boasting that their underwriting times are much less than earlier this year when record mortgage volumes choked their pipelines. The only reason their turn times are down is that loan volumes have dropped as mortgage rates have gone from absurdly low to merely still in the range of historic lows.

On fewer radar screens than what the Fed does, but impacting on interest rates, the U.S. Treasury's $104 billion worth of bond auctions next week could also keep markets on edge. Worries about supply have weighed on the U.S. government bond market, with $2 trillion worth of new debt expected to be issued this year. To sell the paper it has been printing to try to float the economy out of the toilet, at some point the Treasury may have to raise rates to attract enough buyers. Yields rise as bond prices fall. Mortgage-backed securities correlate, generally, with Treasury issues, and mortgage interest rates rise or fall with the fate of mortgage-backed instruments.

Homebuyers and refinancers continue to have an extraordinary opportunity to take advantage of this market. Contrary to the impressions of some, there are many accessible and accommodating mortgage products. Niche products offer special advantages---such as 100% Rural Housing Loan with no MI, 100% VA loan with no MI, all FHA products and even jumbo loans (with no escrows and no MI) from our portfolio sources.

30-Year Conventional Fixed
5.25% $200,000-$417,000

FHA-100% VA
5.5% $100,000-$393,300

100% Guaranteed Rural Housing w/no MI

6% $100,000-$417,000

30-Year Jumbo 5/1 ARM (10% down, No MI)

5.2% $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

"There is nothing more powerful than an idea whose time has come." - Victor Hugo

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.)