As I was reviewing the market activity yesterday, all I could say was "WOW"-it certainly was another WOW day. After a drop below 8000, the DOW swung the other direction suddenly to finish up over 500 PTS. I didn't really hear any news that should have caused this 900 Pt swing, but it could been driven partly because the Treasury decided not to buy bad loans from troubled asset sheets, but instead to actually invest in these banks taking a degree of ownership. This was viewed as a better way to actually get the bailout bucks directly onto balace sheets and hopefully to get these banks to lend again.

As a result of the market fickleness, Treasuries weakened yesterday and yields increased which did affect pricing in the late afternoon. These yields have again reversed in pre-market trading and there will most likely be increased interest in Treasury notes again today as recent trends suggest profit taking after big market run ups. Today should not buck that trend.

Reports yesterday showed a drop in the Nationwide Mortgage rate averages over the past two weeks. That average is now slightly over 6% for the 30 year fixed term. PAR rates are available closer to 5.75%.

Today's big news (even though investors have already prepared for it) will be the Commerce Department's report on retail sales. This is projected to paint a continued portrait of the consumer's inability to spend. It will also reinforce the effects of the unemployment rate news out yesterday, showing a national average of 6.5%.  What is the rate in your area?

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