Bond prices rise, yields drop as investors bet mortgage loans will be repaid - 2004-01-16
The benchmark 10-year U.S. Treasury note was up for a third day on speculation owners of mortgage-backed bonds were purchasing government securities to protect themselves against the risk that homeowners will refinance their loans at a faster pace.

The drop in yields led some investors to bet more home loans would be repaid, leaving them with a smaller proportion of mortgage-backed securities than held in their benchmark index.
Read the full story at San Jose Mercury News

Mortgage interest rates drop to six-month low - 2004-01-16
Mortgage rates around the country reached this week to a six-month low. The average rate on 30-year mortgages dropped to 5.66 percent, down from 5.87 percent last week, Freddie Mac, the mortgage giant, said Thursday in its weekly nationwide survey of mortgage rates.

This week's rate was the lowest since July 11 when the rate averaged 5.52 percent. Rates on 30-year mortgages have bounced around after sinking to a four-decade low of 5.21 percent in the middle of June.
Read the full story at Contra Costa Times