News You Can Use from Gary Moore

Weekend Market Update

Aug. 28-29, 2010

Mortgage interest rates remain in a range of record lows, although Friday’s market action reversed the larger trend as stocks were up and bonds were down. On Friday revised GDP figures from the second quarter showed that the economy grew at a 1.6% pace, which was modest yet above analysts’ expectations.

Stocks rose in an oversold rally, and for a change money moved out of Treasuries and mortgage-backed securities and into stocks. Strong buying interest at a key technical level and short-covering sparked the market's comeback, and the tone improved as investors took a more positive view of Fed Chairman Ben Bernanke's comments about the economy and the Fed's readiness to act.

The Dow Jones industrial average gained 164.84 points to 10,150.65. The Standard & Poor's 500 Index jumped 17.37 points to 1,064.59. The Nasdaq Composite Index climbed 34.94 points to 2,153.63. Nonetheless, the Dow and S&P 500 racked up their third week of declines in a row. For the week, the Dow was down 0.6 percent, the S&P lost 0.7 percent, while the Nasdaq gave up 1.2 percent.

Bernanke supported stocks on Friday when he told central bankers at a conference in Jackson Hole, Wyoming, that the recovery has weakened more than expected, but the U.S. central bank was ready to take further steps if needed to spur the recovery.

The 10-year Treasury note closed at a yield of 2.65%, although its yield was as low as 2.42% earlier in the week. Price moves opposite yield in bonds, and as investors’ money moves into these instruments, the price goes up due to increasing demand, while the rate drops as it requires less of a rate yield to draw investors.

Please call me with any questions about the market or to pre-approve you for a purchase loan or to run a free analysis of what a refinance---with cash out or not---would mean for your financial bottom line. Gary Moore 615-579-8658.

30-Year Conventional Fixed

4.25% $200,000-$417,000

15-Year Conventional Fixed

3.75% $200,000-$417,000


30-Year FHA-100% VA

4.25% $100,000-$393,300


30-Year Jumbo Fixed

5.25% $417,001-$900,000

(Interest-only available-Call me)

THDA Great Start

4.8% $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 average pencil is seven inches long, with just a half-inch eraser--in case you thought optimism was dead." --Robert Brault

Visit my real estate website:

http://www.RealCarte.com

Visit my mortgage website:

http://www.BrentwoodHomeLoan.com

(0% points, 1% origination. Market Update informs consumers and Realtors on market trends, offers subjective opinions and is not a quote for a unique borrower. Reply "remove" with your name and email address to discontinue Update.)