Stocks fall sharply, 10 year Treasury Bond rates now at 4.79
Stocks fell sharply today with the Dow down over 300 over worries about credit, liquidity and housing but it was actually good news for mortgage rates as 10 year Treasury Bonds were sharply higher pushing rates down to 4.79%. (When bonds are higher, rates are lower and as I've mentioned previously, 10 year Treasuries are the basis for mortgage rates). Noah Rosenblatt at Urban Digs, currently a real estate agent who previously worked in Wall Street offers a clear explanation of Residential Mortgage Backed Securities (RMBS), Collateralized Mortgage Obligations (CMO) and the current national housing market.
Please read this to understand how it is all intertwined.