Mortgage Rates Edge Up by Scott Davis
This week's turmoil in the stock market has translated into higher interest rates. According to Bank Rate Monitor, the average 30-year and 15-year fixed rate mortgages rose to 7.89% and 7.57% respectively on Thursday. The one-year adjustable rate remained at 6.64% while the 30-year jumbo rate climbed to 8.26%. Whether or not this week's correction in stocks portends a developing bear market, bonds have not particularly benefitted. The flight-to-safety effect that often accompanies sharp stock declines has largely failed to materialize. The yield on the benchmark 10-year Treasury note fell slightly on Thursday to 5.92%, still well above its yield at the beginning of the week. The yield on the 30-year Treasury slipped to 5.80%. Big drops on Wednesday were followed on Thursday by declines of 201.58 points in the Dow Jones Industrial Average and 92.85 points in the Nasdaq composite. That left the Nasdaq at 3676.78, which is a loss of over 17% just this week. Real Estate related Internet stocks are among some of the hardest hit, with Homeseekers.com (Nasdaq:HMSK), Homestore.com (Nasdaq:HOMS) and E-Loan (Nasdaq:EELN) off 70%, 83%, and 93% respectively from their 52-week intraday highs. | 
