The old adage of flight to safety was more than apparent in today’s market.
The inverse relationship between stocks and mortgage backed bonds played true today. After a massive sell off in all major indexes, Mortgage Backed Bonds closed at a 6 month hi.
With newfound liquidity in the mortgage bond market, thanks to last week’s bailout of Fannie and Freddie, Mortgage rates are experiencing lows not seen since the brief dip in early January and are testing three year lows.
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