News You Can Use from Gary Moore

Weekend Market Update

July 3-4, 2010

NOTE: EVEN IF YOU HAVE A LOW INTEREST RATE ON YOUR PRESENT MORTGAGE, DO NOT HESITATE TO CALL ME AT 615-579-8658 FOR A REFINANCE ANALYSIS TO SEE WHAT YOU CAN SAVE IN MONTHLY PAYMENT. MANY HOMEOWNERS ARE TAKING THIS OPPORTUNITY TO CASH IN THEIR 30-YEAR LOAN FOR A 15-YEAR AT A RIDICULOUS RATE OF 3.875% OR THEREABOUTS. ALSO, IT’S A GOOD TIME TO REFINANCE IF YOU WANT TO PULL SOME CASH OUT OF YOUR EQUITY.

Stocks fell Friday on the heels of more bad news about the economy and job creation, but Treasury yields and mortgage interest rates failed to drop, which could indicate we have gone as low as we can with mortgage rates.

The Fannie Mae 4% MBS August delivery coupon mortgage-backed bond lost 9 basis points on the day but gained 47 points for the week as mortgage rates continued to dwell in a range of historical lows. As basis points go up in price paid for the security, rates and yields go down, and vice versa.

The 10-year Treasury broke through resistance at around 3.1% yield earlier this week, and it closed on Friday at a yield of 2.98% after touching a low of 2.89% on Thursday. Money has flowed into Treasuries and caused lower rates during the last two months of weakness in equities and concerns over the global economy.

A disappointing jobs report sent stocks falling Friday and gave the Dow Jones Industrial Average its longest losing streak since the worst days of the financial crisis. The Dow dropped 46 points Friday for its seventh straight loss and its longest slide since October 2008. The Dow and other major indexes posted big losses for a second straight week.

The government said private employers added only 83,000 jobs last month, fewer than the 112,000 analysts had forecast.

The government cut 225,000 census jobs in June. Overall, 125,000 workers lost their jobs last month, more than the drop of 110,000 analysts predicted. The unemployment rate did drop unexpectedly, sliding to 9.5 percent from 9.7 percent. Economists polled by Thomson Reuters had expected it to rise to 9.8 percent. However, the decrease came as some people gave up looking for work. That means they weren't counted among the unemployed.

The government also reported that factory orders fell in May for the first time in nine months. The 1.4 pCercent drop was the biggest since March 2009, when major stock indexes hit a 12-year low.

The Dow fell 46.05, or 0.5 percent, to 9,686.48, its lowest close since Oct. 5 2009. The Dow hasn't fallen for seven straight days since an eight-day loss that ended Oct. 10, 2008.

The Standard & Poor's 500 index fell 4.79, or 0.5 percent, to 1,022.58.

The Dow is now down 13.6 from its 2010 high of 11,205.03, while the S&P 500 is down 16 percent from its high of 1,217.28.

The Nasdaq composite index fell 9.57, or 0.5 percent, Friday to 2,091.79.

For the week, the Dow dropped 4.5 percent. The S&P 500 index lost 5 percent, while the Nasdaq dropped 5.9 percent.

The S&P 500's two-week drop is the worst since early May.

Call me to get pre-approved for a purchase or to explore refinancing options. Gary Moore 615-579-8658.

30-Year Conventional Fixed

4.5% $100,000-$417,000

15-Year Conventional Fixed

3.875% $100,000-$417,000


FHA-100% VA

4.5% $100,000-$393,300


30-Year Jumbo Fixed

5.5% $417,001-$900,000

(Interest-only available-Call me)

THDA Great Start

5.35% $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

"It's a recession when your neighbor loses his job. It's a depression when you lose your own." - Harry S. Truman

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.)