We recently wrote about the differences between stocks, bonds and real estate. And if anything, today was yet another indication our thoughts are spot on. The Dow closed down today by 127.94 points, below 17500 and very nearly broke a six month low.

The NASDAQ also closed lower by nearly a full Stocks continue to slidepercentage point. Commodities are losing steam and the Chinese “fix” doesn’t appear to be working and the contagion reached across Europe as well as here in the States. This is the fifth straight day of losses.

Despite losses on Wall Street, mortgage bonds didn’t get much of any benefit as the benchmark 30 year 3.5 Fannie coupon closed up 6/32 at 103.15.  This translates into a slight drop in mortgage rates for real estate investors but not as much as one would think in light of the Dow’s recent losses. The Fed begins its next round of two-day meetings this week with comments to be released Wednesday afternoon.

Earlier in the year as the Dow marched toward 18000 the easy bet was placed on the Fed raising rates at the July meetings yet that may not happen. There are many who think let’s just get the round of rate increases going and move on but there are too many mixed signals both here and abroad that are probably keeping the Fed’s hands tied. If a rate bump on Wednesday did in fact happen it’s very possible we won’t see much of a reaction in the mortgage bond market. A rate move this week might also fulfill the Fed’s promise there will be a rate increase sometime this year with the next move not coming well into 2016 if the current trends continue.