Last Updated: 11/21/2007

Wednesday's bond market has opened strong following early stock weakness and concerns about the economy next year. The stock markets are showing sizable losses with the Dow currently down 130 points while the Nasdaq has fallen 35 points. The bond market is currently up 23/32, which will likely improve this morning's mortgage rates by approximately .250 of a discount point. This morning's economic data has not had much of an impact on today's trading or mortgage rates. Comments made by the Fed late yesterday are influencing this morning's trading much more than the data is. The Fed lowered its economic outlook for next year, which has affected stocks negatively and helped shift funds into bonds. This has pushed the yield on the benchmark 10-year Treasury Note down to 4.01% and is flirting with the 4.00% threshold. It actually broke that level during overnight trading, which is the first time since September 2005. It will be interesting to see if it will close below 4.00%. Doing so leaves room for further improvements and lower mortgage rates. If not, rates will likely not see much more improvement in the immediate future. Please have a great Thanksgiving.