What's up with housing this week?

Mortgage market commentary

In the financial panic underway now, frightened money is pouring into Treasurys, but for the first time in modern experience the overflow is only a modest benefit to mortgages. The 10-year Treasury note is all the way to 4.78 percent, down a half-percent in three weeks, but mortgages are stuck near 6.625 percent, just a hair off the June high.

This disconnect is the mark of credit suspicion extending all the way into Fannie/Freddie “A” paper — very much misplaced concern, says here.