Brentwood TN Real Estate:Finance Market Update May 12th, 2008

By
Real Estate Agent with RE/MAX Elite

 Brentwood TN Real Estate

Good news for Brentwood TN Home buyers and the real estate market. Mortgage bond prices rose last week pushing mortgage interest rates lower. Stocks fell which helped bonds rally. Trading remained very volatile. Record high oil prices tempered improvements in mortgage interest rates as the fear of inflation continued to dominate the financial markets. OPEC blamed speculators and a weak dollar while some analysts expressed supply concerns associated with unrest in Nigeria. Foreign demand for US debt securities dwindled. For the week, interest rates on government and conventional loans fell by about 3/8 of a discount point.

The consumer price index data Wednesday will be the most important event this week. Retail sales, industrial production, capacity use, housing starts, and consumer sentiment data all have the potential to cause mortgage interest rate volatility. For more information, or to find a lender near you: Call Vanessa Stalets your Brentwood TN Real Estate leader. 615-957-6333


Economic Factors

Economic Indicator

Release Date Time

Consensus Estimate

Analysis

Retail Sales

Tuesday, May 13, 2008

Unchanged

Important. A measure of consumer demand. Weakness may lead to lower mortgage rates.

Business Inventories

Tuesday, May 13, 2008

Up 0.5%

Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates.

Consumer Price Index

Wednesday, May 14, 2008

Up 0.3%, Core up 0.2%

Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates.

Industrial Production

Thursday, May 15, 2008

Down 0.2%

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

Capacity Utilization

Thursday, May 15, 2008

80.2%

Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower rates.

Philadelphia Fed Survey

Thursday, May 15, 2008

None

Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.

Housing Starts

Friday, May 16, 2008

Down 0.7%

Important. A measure of housing sector strength. Larger than expected decrease may lead to lower rates.

U of Michigan Consumer Sentiment

Friday, May 16, 2008

63.0

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

 

Market Conditions

There is a Chinese proverb that states, "May you live in interesting times." It is often argued that the word interesting is meant to be a synonym for turbulent or dangerous. This phrase hits the bull's-eye given the current state of the financial markets.

While stocks and bonds are swinging around wildly there is some good news for Brentwood TN Real Estate and other markets as well. Interest rates for conforming and FHA/VA loans are still historically low by many standards, which is great news for first time home buyers in the Brentwood TN area.

However, low rates are not a given considering the escalating inflation fears that continue to dominate trading amid rising oil prices. Many analysts predict oil prices will continue to rise. While this doesn't automatically equate to higher mortgage interest rates, rising energy prices are usually viewed as inflationary. Inflation erodes the value of bonds causing bond prices to fall and rates to rise. Other investors believe slowing growth and the credit crisis will eventually stem the rising prices. This scenario would generally be positive for bonds, which always translates into a positive for mortgage rates and the Brentwood TN real estate industry.
*Information Courtesy Tonya Esquibel, WRStarkey Mortgage, Franklin TN*

Vanessa Stalets
Brentwood TN Real Estate
RE/MAX Elite
615-957-6333
615-661-4400

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Rainmaker
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Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Good information. I don't think any buyers I know seem to have any idea of what's going on in the financial markets. Thanks for the info.

May 13, 2008 02:49 AM #1
Rainer
56,508
Chul KIM McGuire
CorpusTV.com - Corpus Christi, TX

Vanessa,

Nice "Breaking News" from you!

Cheers, KIM.  The WebTV Realtor.  Padre Island, TX

May 13, 2008 12:03 PM #2
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Melissa Grant
A Serendipity World - Greenbackville, VA
The Law of Attraction In Life & Business

Great information and of course breaking news for Brentwood TN !

May 13, 2008 10:39 PM #3
Rainer
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Adam Waldman
Westcott Group Real Estate Company - Hauppauge, NY
Realtor - Long Island

VANESSA - It's great to see a REALTOR that can analyze the whole financial market.  The people that you work with should be very impressed with your knowledge of all things financial.

May 13, 2008 11:25 PM #4
Rainmaker
42,632
Teri Deane
RE/MAX 100 - Columbia, MD
Realtor, ABR, CRS, SFR - The Deane Team

Hi Vanessa --

I haven't been on in awhile. . .like the new look to your blog!  Seems like you're focusing on new content too.

Nice piece on the financial stuff.

May 14, 2008 01:13 AM #5
Rainer
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Jolynne Photography, Creative Wedding Photography, Family Portraits, Bar Mitzvahs
Jolynne Photography - Hemet, CA
Bat Mitzvahs, Senior Pictures, Event Photography

Ditto, Teri...great new look. Love the 'breaking news image'...very cool

May 18, 2008 08:17 AM #6
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130,186
Rich Dansereau
Positive Real Estate Professionals - Knoxville, TN

Great info! This really demonstrates why those you work with are lucky to have you in their corner! And I really enjoyed the fun way you framed the entire post, very creative!

May 20, 2008 03:23 PM #7
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Vanessa Stalets

REALTOR, Brentwood TN Homes, Real Estate
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