Market Snapshot

As stocks slide (Dow down 183 today thus far) mortgage bond prices rise. The Fannie Mae bond is now up 38 basis points which is very close to the best levels of the past 12 months. Remember, as stocks sell off investors purchase bonds as a "flight to quality." The influx of cash then pushes the bond price up. There is an inverse relationship between bond price and yield, so as bond prices go up, like today, mortgage interest rates go down.