News You Can Use from Gary Moore

Weekend Market Update

Jan. 9-10, 2010

While mortgage rates trended upward for most of December, rates moderated in the first full week of January on speculation that the Fed will extend its program of buying mortgage-backed securites. Treasuries were being bought on Friday on government data that job losses was worse than expected. Bad news about the economy is generally good news for bonds, Treasuries and mortgage-backed secuites as investors put money into those instruments on expectations that a sluggish economy will bear low inflation.

The U.S. Labor Department reported that 85,000 non-farm jobs were lost in December, while analysts had expected better. The news underscored the depth of unemployment, which is hanging at 10%, although a more realistic rate of unemployment would be higher as Americans who have been unemployed for a long time do not count on this report's radar.

Job growth for every decade since 1939 has been in the range of 20%-39%---except for the 10-year period that ended with 2009, which ended essentially unchanged, according to Chart of the Day (http://www.chartoftheday.com/20100108.htm?T).

The Federal Reserve's program of buying mortgages is set to end in March, which may have pushed rates up in December as traders dwelled on the drying-up of that source. However, in recently released minutes of the Federal Open Market Committee's last session, the monetary decision makers are hinting that they may have to continue the program to prop up housing. That information correlated with mortgage rates settling back down this week as demand for Treasuries and mortgage-backeds was up.

This sounds like a mantra, but mortgage interest rates remain in the range of historic lows. If you have an opportunity to purchase a home or investment property or to refinance and get cash out (or not), you owe it to yourself to call me to show you the best options. Real estate prices remain depressed with many foreclosures still needing to be worked out of inventories. This condition will not last forever, just as neither will the $8,000 credit for first-time buyers and the $6,500 gift from Uncle Sam for buyers who are not first-timers. Call me to see if you quality for these programs.

30-Year Conventional Fixed

4.875% $100,000-$417,000


FHA-100% VA

5.25% $100,000-$393,300


100% Guaranteed Rural Housing w/no MI

5.5% $100,000-$417,000

30-Year Jumbo 5/1 ARM (15% down, No MI)

5% $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

"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 real estate website:

http://www.RealCarte.com

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.)