The DOW dropped 1,175 points today as stocks experienced the largest single day point loss on record. When combined with Fridays 600 point drop, the DOW has now lost approximately 6% in the last two trading days, wiping out over $1 Trillion of value in investors’ portfolios.
The flight from stocks sent money into the bond market, lowering yields, and in turn, mortgage rates. Rates didn’t drop enough today to offset the run-up in rates that we’ve seen in the past six weeks but hopefully it signaled a bottom to the recent bond selloff.
If you’re interested in seeing the chart for the FNMA coupon, I’ve pasted a copy of it here – https://www.facebook.com/fmzloans/
Here is a good article on Bloomberg that dives into the details regarding today’s activity in the bond markets –
From our friend Faramarz Moeen-Ziai at Commerce Home Mortgage.
You can speak with Faramarz to learn more about the mortgage rate drop at fmz@commercemtg.com.