News You Can Use from Gary Moore

Weekend Market Update

Feb. 6-7, 2010

The battered U.S. stock market recovered from a sharp drop in late trading Friday but still posted its fourth straight weekly drop.

The Dow Jones industrials, down nearly 170 points in afternoon trading, clawed their way back to finish with a gain of 10. But more stocks fell than rose on the New York Stock Exchange as investors contended with another series of troubling signals about the global economy.

Investors worry that the debt problems will hinder efforts to sustain the nascent economic recovery and undermine confidence in the stability of governments that stand behind the euro, which has been dropping against the U.S. dollar.

With the Dow briefly dipping back below 10,000 and the benchmark S&P 500 down 7.3% from its 15-month closing peak of Jan. 19, money managers and analysts say there is a growing sense that the U.S. stock market's rally from the lows of March 2009 has all but run its course.

Market Technicals

Market technicians are watching for stocks to break through downside support, which, in the case of the Dow could be considered to be the 10,000 mark. With stocks selling hard on Thursday---down more than 250 Dow points---in the face of good earnings news on some fronts, that presented another technical signal of a down market ahead. Strong market moves that seem to contradict “news” are usually reliable signals of what is ahead.

Bad news for stocks is often good news for Treasuries and mortgage-backed securities, and lenders repriced to the good on Friday. The 10-year Treasury closed at a yield of 3.55%.

FHA Deadline Coming Up

Closer to where the rubber meets the road in the local real estate market, if there has ever been a time to buy or refinance a home, it seems to be now. FHA is the main game for purchases now, and FHA’s upfront mortgage insurance will jump to 2.25% come April 15. Also, the first-time homebuyer incentive of $8,000 and the move-up buyer incentive of $6,500 are good through April 30. Call me for details or to pre-approve a buyer for the program.

Economists expect interest rates to rise later this year as the weight of debt and China’s projected slowing of U.S. debt purchasing compels higher rates for Treasury issues to be successful.

30-Year Conventional Fixed

4.75% $100,000-$417,000


FHA-100% VA

5% $100,000-$393,300


100% Guaranteed Rural Housing w/no MI

5.5% $100,000-$417,000

30-Year Jumbo Fixed Rate

6% $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

“Prosperity is the best protector of principle.” --Mark Twain

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.)