Mortgage Rates Drop Quickly as Market Panic Sets In; New Home Sales Take a Breather; Fannie/Freddie Profit Time?

Mortgage Rates Drop Quickly as Market Panic Sets In; New Home Sales Take a Breather; Fannie/Freddie Profit Time?

Mortgage rates dropped quickly today as global financial markets underwent a volatile shift. When money is flowing out of stocks and into bonds (as it was today) rates move lower. There are several underlying reasons for the move and it's impossible to assign a value to each of them with perfect precision. Several of the most noticeable ingredients include: ongoing trade tensions, political upheaval in Britain, and weak economic data early in the day. Even though "stock selling" can be seen as an "effect" as opposed to a "cause," it was big enough that it created additional momentum for the bond/rate market. Simply put, when that much money is flowing out of stocks, it needs a safe place to hide. That place is often the bond market. The net effect for mortgage rates hasn't been fully realized