It's been volitile. Should I stay or should I go? I expect more bad housing data and everytime some comes out, the market drops 200 points.

It's universally expected that the Fed will lower rates by at least 25 points by their next meeting (Sept 18th, I think). Bond funds (MFS specifically) have taken it on the chin during the recent credit crunch. I bought at 5.86 and it has been as low as 5.62. In the last week it BOUNCED back up to 5.74 and I expect that to continue as rates are lowered.