Mortgage rates benefited from yesterday’s “blood bath” in the equity markets.
Following the failure of the $700 billion bailout plan to pass the House of Representative’s stocks sank. The Dow Jones Industrial Average fell almost 800 points which is more than it did after September 11th. The NASDAQ stock exchange had its 3rd worst day in the history of the exchange and its estimated that over $1 trillion in capitalization vanished.
These are certainly historic times. Congressional leaders are working on a revised bailout package the prospect of which is helping stocks rebound today (potentially hurting mortgage rates).
The markets continue to be very volatile and we advise a long-term floating position.
Current Outlook: floating