Nashville Real Estate Forum

Weekend Market Update

March 7-8, 2009

In this environment of continuing low interest rates and a tumultuous market, a strategy that has been working for conforming, refinancing homeowners is to get their loans in processing and get the appraisal done, but to delay locking interest rate pricing until after final approval and only days before closing.

We can lock for virtually any number of days at any time, but due to special incentives during March, our best borrowers are advantaged by getting their loans approved before locking. This presumes--right or wrong--that rates will remain approximately where they are now. This tactic was borne out of November's sudden drop in rates which prompted many borrowers to jump ship from one lender to another to get a better rate. To stop this, which costs lenders, some are pricing in incentives for committing to a lender at the outset of the loan process and then rewarding loyalty by the time to schedule closing.

On the other hand, I have been rushing to lock other loans and products just to beat guideline quicksand. Guidelines for some loan products are changing so frequently that what you contemplated today may not be possible tomorrow. FHA has lowered its loan-to-value for getting cash out, and most lenders have put in a minimum credit score of 620 for FHA loans, which were once blind to credit score.

Fear and bad news continued to swirl in the market this week as unemployment leaped to 8.1%, a 25-year high, and talk of a General Motors bankruptcy kept scared money on the sidelines. Short traders are overly influencing market moves, according to some analysts. And down the market has continued to move, peeling off years of appreciation in the process. Major stock indices are in the range of 1997. The Dow closed at 6,627 on Friday. Rallies have been short-lived and unsustainable. Technical analysis targets Dow 4,500-5,000.

The 10-year Treasury closed at a yield of 2.83%.

30-Year Conventional Fixed
5% $200,000-$417,000

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

100% Guaranteed Rural Housing w/no MI

5.5% $100,000-$417,000

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

5.45% $417,001-$600,000

30-Year Super Jumbo Fixed

6.5% $750,000-$1,500,000

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

"Not only our future economic soundness but the very soundness of our democratic institutions depends on the determination of our government to give employment to idle men." - Franklin D. Roosevelt

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 to discontinue Update.)