Bonds usually go in the opposite direction from stocks, but there were only modest gains in bond prices for the week.
The FNMA 4.0% bond we watch ended Friday up .02, closing at $100.06. As mortgage bond prices go up, mortgage rates go down.
So no surprise that national average rates for conforming mortgages slid for the fifth week in a row according to Freddie Mac's survey. But observers are concerned rates will not stay at these levels (especially with the impending ending next month of QE2).
From my weekly enewsletter for real estate pros, INSIDE LENDING, for the week of May 23, 2011
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