Stock Market Terrible--Why Rates Go Up?

Last week was like a scene from a disaster movie, the only thing missing was
an asteroid on a collision course with Earth. The "normal" rule of mortgage interest
rates has been that when investors are cashing out of stocks due to market
uncertainty, they make a flight to the "safety" of government issued debt-like
the bell-whether 10 year T-Bond. Thus, bad news in the stock market usually equalled
lower long term 30yr/15yr fixed rates. But last week, the perfect storm of bad
news skewed in the opposite direction. The long term 30 year fixed rates initially
dropped to about 5.8755 and then as the stock market plummeted rates jumped up
in tandem. By the end of the week, lenders were quoting 6.875% for a 30 year fixed
rate, an incredible reversal of "normal."
What will happen this week? We cannot begin to guess. Stay tuned for more wild ride.