In an effort to increase liquidity in the markets and stem the credit crisis in banking and lending, the Fed is now allowing mortgage-backed securities to be used as collateral for loans of money to banks. A side effect of this policy is that mortgage-backed securities have been upgraded by the Fed and gained strength, lowering mortgage interest rates. Today the 30 year fixed rate is below 6% again. Misinformed lenders following the treasury note have again missed out. The 10 year treasury note is currently down 109 bps for the day causing treasury rates to increase dramatically.