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The last three days the Dow Jones Industrial average has lost approximately 500 points! The stock market finally gets a boost this morning on a reaction by the Federal Reserve Bank to add $200 Billion into America’s financial credit crisis. At midday, the market was up 150 points. This has caused the government bond prices to fall. The yield on the 10 year Treasury note, which moves in opposite to its price, spikes up to 3.62% from 3.42% Monday evening. The 10 year note is a major factor in mortgage interest rates. As the note price rises, mortgage rates follow. Hopefully we get more help from the Fed’s when they meet on March 18^th. The prediction now is that they will drop the short term interest rate the government lends to banks by .25% or down to 5.75%.

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