News You Can Use from Gary Moore

Mortgage interest rates fell marginally on the week, and U.S. stocks completed December and 2010 with strong gains.

Unemployment numbers below expectations on Thursday supported stocks and underscored that the economy has been firming and adding jobs at a moderate rate. At 388,000, that was the lowest weekly jobless reading in 29 months.

The Dow Jones Industrial Average closed the year at 11,577.51 on Friday, less than 10 points below a two-year high it had reached on Wednesday. The Dow jumped 5.2% in December and was up 11% for the year.

The S&P 500 index fell less than a quarter point to 1,257.64 on Friday. The broad index jumped 6.5% for the month and was up 12.8% in 2010. The Nasdaq Composite fell 10.11 points to 2,652.87 Friday, leaving it with a 6.2% advance in December and a 16.9% gain for the year.

The 10-year Treasury, which is often used as a benchmark for mortgage rates, ended the year at a yield of 3.3%. The closing high for the year was 3.99% on April 5, and the low close of 2.38% was hit on Oct. 10.

Mortgage and Treasury rates turned down, while stocks were selling off hard from the end of April to early July and money was looking for safety. With stocks climbing consistently in October---benchmark averages rose about 20% between July lows until the year's end---the lows in mortgage rates and Treasury yields were over for the year.

The People's Bank of China raised its benchmark interest rate this week in an effort to slow down that country's rapid expansion of credit that is driving housing and food inflation.

We remain in the trough of all-time low rates, although the trend is now up, and it is still a buyer's market in housing. Contact me to prepare for homeowners a refinance scenario, or to pre-approve a prospective buyer or to provide marketing tools for Realtors and Builders. Gary Moore 615-579-8658, email Gary@BrentwoodHomeLoan.com.

First Community Mortgage is part of a locally owned community bank, and we control the loan process in-house as we underwrite all conforming and government loans. We fund the closings with our money, so no one has to wait on a distant wholesale division of a massive, national corporation to send funds.

30-Year Conventional Fixed

4.5% $200,000-$417,000

15-Year Conventional Fixed

4% $200,000-$417,000


30-Year FHA-100% VA

4.5% $100,000-$393,300


30-Year Jumbo Fixed

5.4% $417,001-$900,000

(Interest-only available-Call me)

THDA Great Start

4.55% $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

Quote of the Day

"If you are planning for one year, grow rice. If you're planning for 20 years, grow trees. If you're planning for centuries, grow men." - Chinese proverb

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http://www.RealCarte.com

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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.)