News You Can Use from Gary Moore

Weekend Market Update

April 3-4, 2010

The Labor Department reported that nonfarm payrolls increased by 162,000 in March -- the largest monthly increase in three years, while the unemployment rate remained at 9.7%. U.S. stock markets were closed for the Good Friday holiday, and the bond markets closed at noon.

Bonds and mortgage-backed securities were down for the day and the week, with the 4.5% Fannie Mae contract off by 97 basis points for the week, which loosely translates to a .25% rise in the 30-year fixed rate, or an additional one point paid by the borrower to achieve last week’s rate.

Thin, holiday trading likely exacerbated the bond market’s negative swing, and it will likely swing back in the other direction on Monday morning. Before anyone gets too carried away by the jobs number, nearly a third of the new jobs are believed to be temporary census workers and not permanent positions. Further, the expectation by analysts was that 184,000 new jobs would be added.

With the Dow Jones average having closed on Thursday just under 11,000, look for it to pop through that mark on Monday---at least at some point---while investors buy into the scenario of the jobs market has stabilized and is now expanding. On Tuesday the Fed will release its minutes from the last Federal Open Market Committee meeting, and the markets will be reading tea leaves in an effort to predict when the Fed will begin raising interest rates.

The broad Standard & Poor's 500 achieved its fourth consecutive quarterly gain this week and scored its best monthly rise since last July. For the first quarter, the S&P 500 climbed 4.9 percent. For March alone, it gained 5.9 percent. On Thursday, the S&P ended at 1,178.10 -- an 18-month high.

FHA mortgage insurance premiums increase Monday April 5. If you have a contract and are trying to get your buyer the advantage of the current, lower up-front MIP, call me on Saturday afternoon. My processor will be pulling FHA case numbers for me on Saturday night in order to capture and help any borrowers who are ready to move ahead with a purchase or refinance.

If you and your buyers need a local MORTGAGE BANKER (not a broker) WITH IN-HOUSE UNDERWRITING to get a sale closed smoothly and quickly, call me, and I can get your customer situated and get a pre-approval letter to help you negotiate with a seller.

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30-Year Conventional Fixed

4.875% $100,000-$417,000


FHA-100% VA

5% $100,000-$393,300


30-Year Jumbo Fixed

5.875% $417,001-$900,000

(Interest-only available-Call me)

THDA Great Start

5.58% $100,000-$393,300

4% of sales price Gift

Call for free pre-approval and to discover

the best financing for you!

...by Gary Moore

Mortgage Planner, First Community Mortgage

...a subsidiary of First Community Bank

Cell: 615-579-8658 Toll-free fax: 866-321-6513

"The person who knows how will always have a job. The person who knows why will always be his boss." - Diane Ravitch

Visit my real estate website:

http://www.RealCarte.com


Visit my mortgage website:

http://www.BrentwoodHomeLoan.com