Brentwood TN Homes for Sale and Real Estate

Economic Factors

Economic Indicator

Release Date Time

Consensus Estimate

Analysis

Consumer Confidence

Tuesday, June 30, 2009

55.1

Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.

ADP Employment

Wednesday, July 1, 2009

-363k

Important. An indication of employment. A large decrease in payrolls may bring lower rates.

ISM Index

Wednesday, July 1, 2009

44.00

Important. A measure of manufacturer sentiment. A larger decline may lead to lower mortgage rates.

Employment

Thursday, July 2, 2009

9.6%, -370k jobs

Very important. An increase in unemployment or a large decrease in payrolls may bring lower rates.

Factory Orders

Thursday, July 2, 2009

Up 0.2%

Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.

Market Holiday

Friday, July 3, 2009

None

Important. Bond market closed in honor of Independence Day.

 Your Nashville, Franklin and Brentwood Tennesee real estate and homes for sale source!

"THE WORLD IS BUT A PERPETUAL SEE-SAW." Michel de Montaigne. And that sentiment was especially true in the world of Stocks and Bonds last week, as money see-sawed back and forth between the two markets, halting the improvement that Bonds and home loan rates mustered up in the first part of the week.

Bonds and home loan rates began the week looking good - and remembering that inflation is bad news for both Bonds and rates, they were helped along by good news on the inflation front. Inflation at the wholesale or producer level remained tame in May, and at a consumer level, inflation readings came in lower than expected, with a year-over-year reading at its lowest level since 1950. These are good signs that inflation hasn't become an issue yet. However, inflation will be a concern down the road, due to the massive stimulus being injected into the economy. It is said that rates are like a boat floating atop the sea of inflation...as inflation rises, so will home loan rates. If you or someone you know should be acting on today's still low home loan rates, please get in touch soon.

Also helping Bonds rally in the early part of last week was the fact that the New York State manufacturing index came in weaker than estimates, indicating that the US economy is still very weak. And since bad economic news often causes money to flow from Stocks into Bonds, this piece of news helped Bonds start the week on an improving trend.

However, Bonds and home loan rates reversed course midweek and worsened, as money see-sawed back over to Stocks. They were also pressured to worsen by the enormous amount of Bond supply hitting the markets - as too much supply of anything will naturally cause the price to move lower...and in this case, has caused home loan rates to move higher. As you can see in the chart below, Bonds have worsened when additional supply has been announced, causing home loan rates to climb.

Chart: Fannie Mae 4.5% Mortgage Bond

While the Fed is continuing to purchase Mortgage Backed Securities, their efforts are just not enough to absorb the flood of new closed and securitized mortgages that are hitting the market after the heavy refinance activity recently - not to mention all the Treasury Securities being auctioned in order to pay for all the stimulus plans.

And speaking of activity in the housing market, Housing Starts rose a whopping 17% in May to come in better than expectations. In addition, Building Permits, which are a sign of future construction, also came in better than expected. These are good signs that the affordable home prices, tax incentives and low home loan rates are attracting buyers to the market.

After all the see-sawing action back and forth last week, including a late week rally in Bonds and fizzle in Stocks, home loan rates ended the week slightly higher than where they began.

THERE CAN BE PLENTY OF UPS AND DOWNS WHEN IT COMES TO BUYING A HOME. CHECK OUT THIS WEEK'S SPECIAL MORTGAGE MARKET VIDEO VIEW FOR IMPORTANT INFORMATION THAT WILL HELP EASE THE PROCESS.

The Week's Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of June 22 - June 26

There were 1,783 home closings reported for the month of May, according to figures provided by the Greater Nashville Association of REALTORS®. This figure represents a 28.9 percent decrease compared with 2,508 closings in May of 2008.

Year-to-date closings are down compared to last with year with 7,149. That is a 31.2 percent decrease compared to the 10,406 closings reported through May 2008.

“May home sales are consistent with what we have seen throughout all of 2009 ,” said GNAR President Mike Nichols. “Real estate is feeling the same effects as the rest of the national economy. With the recent American Recovery adn Reinvestment Act of 2009 supported by the FHA, we are hopeful that first-time homebuyers will take advantage of the opportunity to use the $8,000 tax credit to help with certain costs at closing. And, as more potential buyers become aware of this significant help, some of them will take seriously the opportunity to purchase a homein what are really very favorable conditons and act now. ”

A comparison of sales by category for May is:

There were 2,000sales pending at the end of May, compared with 2,489 pending sales at this time last year.  The average number of days on the market for a single-family home was 92 days.

The median residential price for a single-family home during May was $169,900 and for a condominium it was $156,250.  This compares with last year’s median residential and condominium prices of $189,975 and $159,000, respectively.

Inventory at the end of May was 25,096, down from 24,598 in 2008. The current inventory of properties by category, compared to last year, is:

“This is the first time since September of last year that we have seen pending sales at the 2,000 level ,” Nichols added.  “For buyers, this is a very important time. Many factors remain in their favor with interest rates low, inventory plentiful and even support from government programs. However, those factors will not remain that way indefinitely. If interest rates increase, that could add significantly to the cost of a home. So, acting now would be to their advantage. For sellers, making their homes attractive and pricing them properly is critical to getting them sold.“

The Greater Nashville Association of Realtors® is one of Middle Tennessee's largest professional trade associations and serves as the primary voice for Nashville-area property owners and real estate professionals. REALTOR® is a registered trademark which may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics.

Your Nashville, Franklin, Brentwood TN real estate and homes expert!

Last Week in Review

"IT'S A RECESSION WHEN YOUR NEIGHBOR LOSES HIS JOB; IT'S A DEPRESSION WHEN YOU LOSE YOURS." Harry S. Truman. The big headlines of the week had everything to do with job losses...and some surprising twists within the monthly Jobs Report that arrived on Friday, and caused home loan rates to worsen yet once again. Despite their efforts to improve early in the week, Bonds and rates ended the week .375% to .5% worse than where they began.

Friday's Jobs Report showed that 345,000 jobs were lost in May, far better than expectations for 520,000 jobs lost. And adding to the positive tone were revisions to the two prior months, showing 82,000 fewer jobs lost than previously reported. So all in all, about 260,000 fewer jobs lost than had been forecast. But let's take a closer look.

-----------------------
Chart: Non-Farm Payroll

Despite the positive news in the estimated number of jobs lost, the official Unemployment Rate, which is regarded as a more reliable indication of the employment situation, actually came in higher than expectations, climbing from 8.9% in April to 9.4% in May...and this wouldn't seem to make sense, given the decline in job losses, so what caused this apparent discrepancy?

The figures come from two separate surveys. The job creations/loss number is mostly derived from the "birth-death ratio" of business creations and those going under, which is subject to enormous and repeated revisions - while on the other hand, the Unemployment Rate is a real survey of about 60,000 households that are asked about their current employment situation, and therefore, is truly a much more reliable number. And even though traders know this, the market tends to respond to the headline number, which points more at a future trend than the Unemployment Rate, which paints a picture of the current situation. Since positive economic news typically is not a friend of Bonds and home loan rates, this report added to the worsening trend both have experienced recently.

And here's another very interesting note, pertaining to the collection of the US Census numbers, which are vital for state and federal budgets and appropriations, amongst other things. The Census occurs every decade, and as we approach 2010, the government has already begun the temporary hiring of approximately 1.2 Million people. These individuals will be put to work for just a few months, but will count as new jobs created.therefore potentially making the numbers appear a bit better over the short term.

In other news, Personal Spending declined slightly in May, while Personal Income came in better than expectations, thanks in part to the economic stimulus package. Overall, indications are that the economy may be strengthening, but this process will likely be marked by continued market volatility. And this volatility we have seen in the financial markets is partly why the Treasury Department announced that they are scaling back their upcoming auctions, as the massive supply has started to weigh heavily on the Bond market and the US Dollar.

All the twists and turns we are seeing make it more important than ever to follow the advice of a knowledgeable mortgage professional who stays tuned in, and can offer good advice as to smart moves to take right now. Let me know if you or someone you know has any questions about your personal situation.

WANT TO PREVENT LOSING YOUR MIND FROM "SCHEDULE-OVERWHELM" THIS SUMMER? CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR A GREAT TOOL THAT CAN HELP YOU KEEP TRACK OF EVERYTHING YOU HAVE PLANNED...AND BEST YET, IT'S FREE.

Forecast for the Week

The Mortgage Market View...

MANAGING YOUR SUMMER SCHEDULE JUST GOT EASIER

Summer schedules always seem to be hectic. Between sporting events, graduation parties, weddings, family vacations and more, it can be hard to keep track of everything your family and friends will be doing this summer.

That's where a helpful little tool from Google™ - called Google Calendar - can come in handy. As with most of Google's applications, Google Calendar costs nothing and signing up is easy.

Getting Started

Just log on to Google.com/calendar and create a free account, which will take all of two minutes.

Once you've registered, organizing your schedule is only a few clicks away. If you're still apprehensive, take comfort in knowing that Google Calendar works like most personal scheduling programs, but with a few added perks.

More Than Just a Calendar

For starters, Google Calendar is fairly user-friendly, offering daily, weekly, and monthly views of your schedule. The program also offers the ability to create personal calendars for things like American holidays or birthdays. Any calendar you set up can be easily integrated with Google's email program, Gmail. This allows you to quickly add events mentioned in Gmail conversations as well as most other events you find online.

Google Calendar also gives you the ability to share your schedule with others and vice versa. Perfect for families on the go or business associates at opposite ends of the country, Google Calendar maintains your privacy by allowing you to pick and choose which events you want others to see. The program also allows you to plan and promote events by giving you the ability to send invitations as well as track RSVPs.

Perhaps the most exciting feature of Google Calendar is the options it gives you in terms of reminders. Whenever you schedule an important event, Google Calendar gives you the option to receive reminders via email, an online pop-up, or a text message on your cell phone!

Google Calendar also has a really great tool that allows you to search all of your calendars for specific information.

One other feature worth noting is called "Quick Add." This enables you to add events to your schedule simply by clicking a link and then typing in the relevant event information in "natural language" (i.e. Tom's party next Saturday at 8:00pm).

Finally, Google Calendar does integrate fairly well with most existing scheduling programs; however, it may require a little manipulation in some instances.

Whether you're completely overwhelmed by your summer schedule or simply on the fence about your current scheduling program, you may want to give Google Calendar a try. It may open your eyes to some interesting new options!

The Week's Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of June 08 - June 12

Last Week in Review

"I'M FREE...FREE FALLIN'." Tom Petty. And a free fall indeed was the case last Wednesday, as Bonds had their worst one-day performance since last October, losing an astounding 206bp. So what caused this free fall...and what helped Bonds and home loan rates rally back and improve later in the week? Here's what you need to know.

The main culprit for Wednesday's sell off was supply. The Treasury auctions and the increased number of refinance transactions closing have added hundreds of Billions of dollars of new Bond supply to the market. Economics 101 tells us that anytime supply vastly exceeds demand, prices will move lower, and that's exactly what we saw last week...and as Bond prices move lower, home loan rates move higher. And the trend isn't likely to end anytime soon, as the Treasury will have to continue to pump out major supply of Bonds, in order to pay for the massive government stimulus plans...and the Fed buying plan simply won't be enough to balance out supply and demand - it's like trying to sop up a flood with a sponge. Bottom line - rates are likely on the rise, but still near historic lows. Let's talk and make sure you have taken necessary actions for your own financial situation.

Yet the news wasn't all doom and gloom - as both the Dow and S&P 500 have seen three months of positive gains for the first time in over a year! And the National Association for Business Economics (NABE) said that the end of the recession is in sight, noting that, "While the overall tone remains soft, there are emerging signs that the economy is stabilizing." The Commerce Department's report that Gross Domestic Product for the first quarter fell at an annual rate of 5.7% was better than initial estimates, also indicating that the recession may be slowing down and turning more moderate. Important reminder: An improvement in the economy will likely push rates higher over time, which is why it's important to take action during this opportunity of low rates.

In other news, Initial Jobless Claims were better than expectations, but a higher revision to the prior week's reading offset the slightly positive headline number. Durable Goods Orders in April also came in a bit better than expectations. On the housing front, while New Home Sales were just under estimates, Existing Home Sales came in higher than expectations. These reports didn't impact the markets a great deal last week, as the impact from all the extra supply was the real mover and shaker.

Bonds were able to regain some ground Thursday and Friday after their steep free fall on Wednesday, but even with the improvement, home loan rates ended the week .25% to .375% worse than where they began.

READY TO CLEAN OUT SOME OLD CLUTTER AND GAIN SOME EXTRA CASH? IF YOU'VE BEEN THINKING ABOUT HOLDING A YARD SALE THIS SUMMER, CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR GREAT TIPS THAT WILL HELP YOUR SALE SOAR TO SUCCESS.

Forecast for the Week

Memorial Day Holiday

As the Memorial Day holiday is being observed, the next full issue will arrive on Monday, June 1. I wish you and your family a peaceful Memorial Day holiday, as we remember the sacrifices of all of our Armed Forces servicemen and women, past and present, who have worked so hard to protect our great country.

Best wishes to you, and please do not hesitate to contact me if I may be of any assistance to you at this time!

The Mortgage Market View...

What's A Couple Extra Trillion?

These days, the government often tosses around "billions" and "trillions" as they talk about various programs. Here's a great way to visualize what these amounts actually mean.

Let's begin with what $1 million looks like. Believe it or not, this little pile is $1 million (100 packets of $10,000). You could stuff that into a grocery bag and walk around with it.

While a measly $1 million looked a little unimpressive, $100 million is a little more respectable. It fits neatly on a standard pallet.

And $1 BILLION. now we're really getting somewhere.

Next we'll look at ONE TRILLION dollars. This is that number we've been hearing about so much. What is a trillion dollars? Well, it's a million million. It's a thousand billion. It's a one followed by 12 zeros.

(And notice those pallets are double stacked.YOU are the little person in the red shirt standing at the lower left corner) So the next time you hear someone toss around the phrase "trillion dollars". that's what they're talking about.

The Week's Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of May 25 - May 29

Last Week in Review

"I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW." Og Mandino. The markets took those words to heart last week, with plenty of timely action ranging from telling economic reports to interesting announcements from the government, related to homebuyers.

On the economic news front, the headlines were mixed. On the disappointing side was a worse than expected Retail Sales Report, which showed that consumers are continuing to tighten their purse strings. Not entirely surprising, but it did mark the eighth decline in the past ten months for Retail Sales. Initial Unemployment Claims were also reported worse than expected - which some said were due to massive Chrysler layoffs - but still was disappointing after there had been some recent signs of improvement in the labor markets.

However, there was positive economic news as well, including improved readings from the manufacturing sector, as the New York Empire State Manufacturing Index improved for the third month straight. Consumer Sentiment was also better than the previous reading and the best since September of last year. So although the consumer isn't out spending money with abandon just yet, this report shows that most folks are indeed starting to feel better about the economic outlook, likely due in part to the values of their investment accounts improving as Stock values move higher.

Looking at the always-important inflation headlines, wholesale inflation levels moved higher in April, driven by an increase in food prices. On the consumer inflation side, the Consumer Price Index (CPI) report was flat, although the Core CPI - which removes food and energy prices - was a little hotter than expected, largely due to a huge spike in tobacco prices by a smoking 9.3%! Core inflation has been moving slightly higher since February, as you can see in the chart below.

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Chart: Core Consumer Price Index

Remember, inflation is the archenemy of Bonds and home loan rates, so I will be keeping a close eye on this in the coming months.

And as if that all weren't enough, the government got in on the action, with the Department of Housing and Urban Development's Federal Housing Administration making a very interesting announcement that ultimately appeared to be slightly premature. They announced a new plan to allow first-time homebuyers to use the Federal tax credit of up to $8,000 for a down payment at closing, rather than making buyers wait to receive the benefit after the fact at tax time. However, no details or logistics of how this will actually work were released, causing them to actually pull some of the industry announcements as they regroup to provide more details. This could be great news for first-time homebuyers, who are slated to account for 53% of home purchases in 2009. When the details of the program are fully released, I will certainly keep you posted as I learn more.

Bonds and home loan rates were able to make some improvements in the early part of the week as weak economic reports caused money to flow from Stocks into Bonds. And while Bonds lost some ground on Friday, home loan rates still ended the week slightly improved from where they began.

NOW IS THE PERFECT TIME TO TAKE SOME ACTION IN GETTING YOUR HOME READY FOR SUMMER. CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME GREAT TIPS AND IDEAS.

Forecast for the Week

The week ahead is sure to be just as action packed as the last, including a read on the housing market via Tuesday's Housing Starts and Building Permits report. And given last week's worse than expected Initial Unemployment Claims report, this Thursday's updated number will be one to keep an eye on.

Thursday also brings more news from the manufacturing sector with the Philadelphia Fed Report. This monthly survey of manufacturing purchasing managers conducting business around the tri-state area of Pennsylvania, New Jersey, and Delaware is one of the most-watched manufacturing reports overall. And given the good news from last week's New York Empire State Manufacturing Report, it will be interesting to see what the Philadelphia Fed Report reveals.

Remember: Weak economic news normally causes money to flow out of the Stock market and into the Bond market, helping Bonds and home loan rates improve...while positive and strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates made some improvements last week, so I will be watching closely to see if this direction continues in the coming week. If you have questions as to how current historically low interest rates might benefit you, or someone you know, please feel free to send me an email or give me a call - my contact information is right at the top of this newsletter.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday May 15, 2009)

The Mortgage Market View...

"Summerize" Your Home with These Spring Projects

It's hard to believe, but the official start of summer is just a few weeks away! Here are some spring cleaning projects you should definitely consider tackling before the hottest days of summer descend upon us.

Air Conditioning
It's important to have your air conditioner in perfect working order before summer starts. Taking care of any issues after the summer heat hits can potentially result in an increase in price, as well as an increase in the time it takes for a technician to visit your home. You should also replace any filters now. Simply remove the old one and take it to your local home improvement center. Sales representatives should have no problem finding its replacement.

Clean out your garage
Organizing a garage can be an excruciating experience during the hot summer months, so if that's something you need to do, don't put it off any longer. Once you clean out your garage, either donate any unwanted items or sell them.

Paint
Late spring is the perfect time to paint the interior of your home since the weather best lends itself to keeping your windows open, allowing the fresh air in and the paint fumes out. If you decide to paint the inside of your home, think about lightening the existing color as opposed to darkening it. Lighter colors are not only inviting, they create the illusion of a bigger, more open space.

Buy fans
Installing ceiling fans and using portable fans are great methods for cutting the heat inside your home. They are also far less expensive to use than an air conditioner. Using fans of any kind also enables you to keep windows open at night, allowing fresh air to circulate throughout the house.

Install dimmer switches
Dimmer switches not only add ambience, they also cut down on energy and the unwanted heat given off by brighter bulbs. Another tip is to use low-wattage light bulbs whenever possible.

Good luck and happy "summerizing!"

The Week's Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of May 18 - May 22

 Nashville, Franklin and Brentwood Tn Homes

Last Week in Review

"REALITY IS THE LEADING CAUSE OF STRESS AMONGST THOSE IN TOUCH WITH IT." Lily Tomlin. The reality of the recession has been stressful for many of us, but various pieces of news this week show things may be starting to turn around.

Friday's important Jobs Report showed there were 539,000 jobs lost in April versus expectations of a 610,000 loss, representing the smallest job loss since October. Even though the Unemployment Rate moved higher and hit a 26-year high of 8.9%, this is a lagging indicator, and many other data points hint that the worst could be over for the job market, and could lead to lessening stress in this area during the months ahead.

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Chart: Jobs Report

Speaking of stress, last week's "stress test" results showed the banking system is on the mend, and in better shape than it was a few months back. 10 of the 19 largest banks will need additional capital to cope with potential future challenges, but as a whole the banking system is solvent and regaining health. A crucial point to remember is that almost all of the institutions under scrutiny elected to choose the cash flow method of asset valuation, as opposed to the mark-to-market method. This would not have been possible without the Financial Accounting Standards Board (FASB) allowing for this change last month.

Positive news came from Wal-Mart, saying that their sales for April were better than forecast. And they say, "As goes Wal-Mart, so goes the entire retail sector", so this may mean health is also coming back to retailers at large.

Bonds attempted to regain some ground in the early part of the week, but the good news from Thursday's bank stress test, the better than expected Jobs Report on Friday, and the rally in Stocks caused Bonds to fall below key support levels. As a result, Bonds and home loan rates ended the week slightly worse than where they began.

NO NEED TO STRESS OVER THE LATEST POSTAGE RATE INCREASE. CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR ALL THE CHANGES YOU NEED TO KNOW ABOUT.

Forecast for the Week

The Mortgage Market View...

YOUR TWO CENTS WORTH

Starting May 11, 2009, it'll cost you two extra cents to mail someone your thoughts. That's right...the US Postal Service is implementing its annual price adjustment, and the biggest change for most consumers will be a price increase for First Class stamps from 42¢ to 44¢.

Prices for mailing services are reviewed annually and adjusted each May. The information below can help you plan for your postal expenses and figure out how you can save!

New Prices

Consistent with The Postal Accountability and Enhancement Act, the average increase of the prices is at or below the rate of inflation as measured by the Consumer Price Index.

Here's what the new pricing will be:

First-Class Mail letter 1 oz. = .44¢ (current price = .42¢)
Postcard = .28¢ (current price = .27¢)
Certified Mail = $2.80 (current price = $2.70)

First-Class Mail International:

• To Canada 1 oz. = .75¢ (current price = .72¢)
• To Mexico 1 oz. = .79¢ (current price = .72¢)
• To all other countries 1 oz. = .98¢ (current price = .94¢)

Save with Forever Stamps

Remember, if you purchased Forever Stamps prior to May 11 at a lower rate, you can use them even after the price change. As the Postal Service likes to say: Forever really means forever. So try to purchase and use these stamps whenever possible.

Forever Stamps are widely available through Post Offices, consignment locations, automated postage centers, and The Postal Store®.

To learn more about the new pricing structure, visit the USPS website. You can also access a press release as well as audio "soundbites" about the new prices on the USPS newsroom.

The Week's Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of May 11 - May 15

*Courtesy Billy Winfree Vice President Pinnacle Financial Partners 615-743-8397*

 Nashville, Franklin and Brentwood Tn Homes

There were 1,604 home closings reported for the month of April, according to figures provided by the Greater Nashville Association of REALTORS®. This figure represents a 24.9 percent decrease compared with 2,135 closings in April of 2008.

Yea-to-date closings are down compared to last with year with 7,898. That is a 28 percent decrease compared to the 10,979 closings reported through April 2008.

“Home sales in Greater Nashville continue to decline, but there are some encouraging signs,” said GNAR President Mike Nichols. “First, the rate of decline in sales is still significant, but much smaller than it has been in recent months. And second, pending sales are increasing. The spring and summer are traditionally the strongest seasons for home sales, so we do expect to see some growth in coming months.”

A comparison of sales by category for April is:

There were 1,865 sales pending at the end of April, compared with 2,342 pending sales at this time last year.  The average number of days on the market for a single-family home was 91 days.

The median residential price for a single-family home during April was $164,500 and for a condominium it was $149,900.  This compares with last year’s median residential and condominium prices of $180,000 and $162,000, respectively.

Inventory at the end of April was 24,408, down from 24,670 in 2008. The current inventory of properties by category, compared to last year, is:

“Inventory is fairly stable right now, and is actually almost right where it was a year ago,” Nichols added.  “Farm, land and lots is the only category that is up significantly. Residential and condominium are both down. Farm, land and lots will likely stay where it is until homebuilding activity begins to increase again. For those trying to sell their home, it makes sense to have it fixed up inside and create as much curb appeal as possible. Competition for buyers is still very significant so preparation and proper pricing are critical to making transactions happen.“

The Greater Nashville Association of Realtors® is one of Middle Tennessee's largest professional trade associations and serves as the primary voice for Nashville-area property owners and real estate professionals. REALTOR® is a registered trademark which may be used only by real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics.

Nashville Franklin Brentwood TN Homes For Sale 

Last Week in Review

"YOU'RE MOTORING.WHAT'S YOUR PRICE FOR FLIGHT?" 80's band Night Ranger's ballad "Sister Christian" perhaps describes the question some spring break travelers are asking travel agents as they reschedule plans to visit Mexico, in light of last week's sudden swine flu outbreak. And while the quickly spreading illness has made this Spring's travel season especially challenging, there are some bright spots on the horizon for the economy.

Last week, the Fed signaled that the recession may be easing, and this news was echoed by the Economic Cycle Research Institute (ECRI), who also said that the recession would probably end by the time Summer is over. The ECRI, whose leading indicators have a solid track record of predicting turns in the business cycle, said that enough of its key gauges have turned upward to indicate with certainty that a recovery is coming.

The beleaguered auto industry has been big news of late, and while Chrysler struggled to find "Mr. Right" in Fiat, the price for their flight ended up to be bankruptcy.  While on the other hand, it looks like Ford will be all right tonight, as their Stock is up big from just one week ago. What's more, as you can see in the chart below, Stocks in general had a great April. In fact, the S&P 500 had its best month in nine years, gaining 9.4%, led by the financial sector. This is further evidence that the changes in mark-to-market accounting were a great decision.

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Chart: S&P 500

In addition, there were several good economic reports to note as Consumer Confidence for April came in at its fourth largest gain in the history of the survey, while Consumer Sentiment also came in better than expected. The improvement in the way consumers are feeling is likely influenced by the improvement in Stock prices.

But Stocks are near an important ceiling of resistance that has been difficult to break. Just like Bonds, Stocks respond to floors of support and ceilings of resistance - and a look at the above chart shows how the level of the S&P 500 between 875 and 880 has put a lid on Stock price advances eight times during the past few months. Interestingly enough, Friday's close was right at the ceiling, at 877.52. Should prices break higher next week, it could lead to another 8% rise in the overall Stock market before the next ceiling is hit. However, should the S&P 500 Index fail to advance further, prices will likely drift down to the nearest floor, about 5% below current levels. That's what makes this pivotal point so important, and worth keeping an eye on in the coming week.

Yet our economy isn't in full bloom just yet. The Advance Gross Domestic Product (GDP) Report showed that the US economy contracted more than expected in the first quarter. The combined contraction of the last two quarters is the worst in more than 60 years. Continuing unemployment claims are still a problem, coming in at a record 6.27M, while the Personal Income and Spending Report showed that consumers are still watching their wallets very carefully.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates to improve, while strong economic news normally has the opposite result. Bonds were buoyed in the beginning of last week due to Stocks losing ground on the swine flu news, but the variety of good economic news gave Stocks a boost later in the week at the expense of Bonds and home loan rates. As a result, Bonds and home loan rates ended the week slightly worse from where they began.

THE GOVERNMENT IS BACK IN ACTION, ATTEMPTING TO MAKE THIS SPRING A BETTER ONE FOR DISTRESSED HOMEOWNERS! CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR DETAILS ON AN UPDATE TO THE MAKING HOME AFFORDABLE PROGRAM.

Forecast for the Week

The big news to look for this week will be April's Jobs Report, coming out on Friday at 8:30am ET. The anticipation prior to and results of this report will have Stocks teetering along the aforementioned pivotal level of resistance. The direction of Stocks will no doubt influence Bond prices in the opposite direction.

March's Jobs Report had a mix of good and bad news, as the economy lost 663,000 jobs, meaning 5.1 Million jobs have been lost since the recession began in December of 2007. However, for the first time in a very long while, there were no downward revisions to a prior month's reading, as February's number came back with no change. It will be important to see if April's numbers or any revisions to March show if there is indeed some level of stabilization at hand for the labor market.

Remember that the Unemployment Rate tends to be a lagging indicator, but the number of jobs created gives us a current view of the markets. Still on the jobs theme, Thursday's Initial

Jobless Claims number - although volatile - gives us a glimpse of what we can anticipate.

As you can see in the chart below, Bond prices and home loan rates worsened this week - but home loan rates are still near historic lows. If we have not talked recently about your home loan situation or future plans, please give me a call or send me an email - let's talk.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday May 01, 2009)

The Mortgage Market View...

Making Home Affordable. The Saga Continues!

In an effort to fill in some of the gaps exposed in the initial Making Home Affordable (MHA) program, Washington has stepped up its efforts to assist more distressed homeowners. In a press release on April 28th, the U.S. Treasury announced an update to the program designed to assist nearly 50% of those homeowners seeking relief from the MHA program.

What's New?

By some estimates, nearly 50% of all struggling homeowners actually have two mortgages. This is because many borrowers chose to split their mortgage in two to avoid an additional Private Mortgage Insurance monthly payment. The problem is, having two mortgages complicates attempts to refinance or modify home loans.

To minimize these complications, the new legislation is intended to assist mortgage servicers with new guidelines that give incentives for participation and help decrease payments for homeowners. These incentives have also been extended to homeowners enrolled in the program to assist them in making their future payments on time.

The news announcement also addressed the Hope for Homeowners (H4H) program created last year. The biggest news relating to H4H is that participating servicers will be required to look at H4H in tandem while considering a loan modification. In order to support more investor participation, incentives will be extended to the servicer and the Treasury will continue their buying program to help rates stay attractive as well.

What Does This Mean for You?

Despite these additional guidelines, the Making Home Affordable program is still best suited for helping a specific group of struggling homeowners.

If you're interested in refinancing or looking into a modification, I'd be happy to help you examine your options. Even if a modification isn't right for you, there may be an opportunity to refinance your mortgage and take advantage of today's historic lows.

The Week's Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of May 04 - May 08