Bonds Rally, Stock Markets Shudder on Banking Crisis

Rates were down this morning as the bond markets reacted positively to stock market losses, and worse than expected February Industrial Production report. Rates are about .25 to the price lower, and this was affected by strength in bonds late Friday. The $2 per share purchase of Bear Stearns by JP Morgan Chase over the weekend sent global financial markets into turmoil as the stability of the US Banking system was brought into question. In addition the Fed cut the discount rate by .25 on Sunday, making the cost of funds cheaper to banks when they borrow money from the Fed. Tomorrow, the Fed is widely expected to cut the Fed Funds rate, the benchmark rate considered most imporant to mortgage rates. Also on deck is the February PPI report which should measure inflation at the level of the producer. This makes tomorrow undoubtedly the most imporant day for mortgage rates.

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Rates Flat Despite Productivity Gains

Rates were flat today despite better than expected economic news. Retail rates should be unchanged to slightly higher over yesterday, due to yesterday afternoon weakness in bonds.

Bonds Increase, Fannie Mae Lending Power Enhanced

Treasury bonds increased further today, on rebounding stocks. Fannie Mae the largest US Mortgage company, posted a larger than expected quarterly loss.

Quiet Week Ahead For Rates?

onds were relatively calm today despite a drop in the stock market. Rates may edge up about .125 to price today.

Rates Jump on Strong Employment Report

Bonds were sharply down and rates increased following stronger than expected jobs data, signifying renewed concerns about inflation.

Rates Down In Anticipation of Employment Report

Interest rate markets were up today despite the release of stronger than expected economic data.

Fed Cuts Rates .25%

The Federal Reserve announced today it would cut key short term interest rates by a quarter of a percentage point.

Rates Down Despite Weaker Than Expected Economic Reports

Bonds were up, rates were down today despite stronger than expected data. Retail mortgage rates dropped about .375 to price.

Rates Flat in Anticipation of Weeks Data

Rates were unchanged today and the bond market flat with no economic news released and the stock market calm as well.

National Rates

Loan Type Today
30 Year Fixed   5.44
15 Year Fixed   5.01
5/1 Adjustable   5.14

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