News You Can Use from Gary Moore

Weekend Market Update

June 19-20, 2010

Mortgage interest rates continued to slide into historical lows in the mid-4s this week as government data about the economy and the absence of inflation supported the value of Treasuries and mortgage-backed securities.

That slide could run into resistance this coming week, however, as traders are poised for money to return to equities after China announced on Saturday that it would let its currency float against the dollar. May’s fall in rates was accompanied by selling in stocks as money flowed into the relative safe haven of U.S. Treasuries, which loosely correlate with mortgage-backed securities and mortgage interest rates. If equities return to favor, that scenario is likely to be reversed.

China has pegged its currency to the dollar for 23 years, but this move will clear the way for Chinese currency to appreciate. This will most benefit U.S. corporations that sell to China, such as Caterpillar, as China’s buying power is raised. It will also make China’s exports more expensive.

Last week's relatively successful bond sales in peripheral euro zone countries and expectations that the Federal Reserve and other central banks will keep borrowing costs low are also adding to investors’ appetite for risk. The Federal Open Market Committee will meet this week and is expected to keep interest rates low in the face of a weak economy.

The Treasury will be selling debt this week in such volume that it could impact mortgage rates, depending on the demand. The 10-year Treasury closed at a 3.22% yield on Friday.

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


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

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value." - Alan Greenspan

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.)