Strange behavior with DNS (Unbound)

[mdecou]

So I recently noticed some odd behavior with my DNS (unbound) as follows:

When pinging my domain name, (ie: ping myhost.net) the system returns 127.0.0.1 instead of my public IP address.
When pinging other hosts on the LAN, things go as expected.
If i ping a random host that does not exist (ie: ping fakehost) the system again returns 127.0.0.1 where I would expect it to return an error.

Is this expected behavior, or does it appear I have a configuration issue?

Thanks