Daily Market Update 7/10/08

Rates remained little changed Thursday as concerns grew over the financial stability of mortgage giants Fannie Mae and Freddie Mac. Stock prices for both companies hit their lowest point in over 15 years. The Wall Street Journal reported the Bush Administration has been considering a contingency plan should the companies become insolvent due to rising mortgage defaults. Most analysts believe the government would not allow Fannie or Freddie to fail given the impact such an event would have on the housing market. Separately, oil prices moved higher, the dollar lower, and stocks were mixed