Stocks continue their decline as retailers have been posting earnings that do not meet estimates and future projections that are adjusted downward. This has again reinforced the market tone which is being driven by the consumers reluctance and inability to SPEND. Consequently, after no Treasury activity yesterday, today begins with a rally to Government sponsored debt, even at lower yields. The 10 year Treasury note started the day at 3.73% after Monday's close at 3.75%. It is currently down about 7/100ths to the 3.69% range. Pricing is also down slightly with sub 6% rates holding for 30 year terms and sub 5.75% available for 15 year terms. For a cost of roughly 1 1/2 pts., you can save approximately 3/8's to rate. This is based on a rate sheet received by one of my lenders this morning.

Today's next big driver will be the Treasury Secretary's update on the Bailout progress. This is sure to add to the day's nervousness. We'll have to wait and see.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION