Here’s how weird Wall Street is. The minutes from the September 16-17 FOMC meetings were released today, comments in those minutes noted that while the economy here seems to be better, due to global economic pressures, our Stocks Rallyeconomy could weaken. And the result on Wall Street?  Stocks rallied and the Dow cracked the 17,000 mark for the first time in more than a month.

That’s right. Our economy could once again falter and equities moved higher. But this hand-in-hand move has going on for more than a year now.

Good news about our economy and stocks shrink while bad news causes stocks to rise. Instead of looking at quarterly earnings or corporate revenues, the likelihood of a lousy economy sparks a rally. And not just the Dow, the NASDAQ and S&P 500 recovered earlier losses as well. And mortgage rates? Well, they went up on news the economy could go into a stall due to global affairs. The benchmark FNMA 3.5 mortgage-backed security dropped 5/32 to 104.11. Note the par rate of 100 when the current coupon was issued is now above 104 causing interest rates to tumble over the past week.

According to Freddie Mac’s weekly mortgage rate survey, the 30 year note averaged 3.76%, down from 3.85%, that’s a respectable nine bps swing. We haven’t seen that kind of movement in months and it’s cause refinance activity to pick up. These Fed comments along with lower rates makes for an excellent time to buy investment real estate or refinance existing notes. It’s indeed a strange world.