•  Monday’s mortgage rates should be higher by approximately .250 of a discount point if compared to Friday’s early pricing. The bond market is currently down 9/32 (4.38%).

 •  Stocks are mixed but mostly calm with the Dow down 2 points and the Nasdaq up 30 points.

 •  The National Association of Realtors kicked-off this week’s calendar late this morning when they released their April Existing Home Sales report. It revealed a 0.2% increase in home resales to signal modest growth in the housing sector last month. This was close to expectations and hasn’t had an impact on this morning’s pricing.

 •  News that President Trump is rejecting Iran’s peace proposal and the increase in oil prices that followed are fueling this morning’s bond weakness. This is another sign that despite what is said and reported in the media, the conflict isn’t likely to be resolved in the immediate future. High oil prices raise inflation concerns in the global economy that make bonds less appealing to investors.

 •  Of the remaining four monthly economic reports set to be posted this week, three of them are major releases that have the potential to draw a very strong reaction in the markets.

 •  In addition to the economic reports, there are also two Treasury auctions of long-term debt that may influence mortgage rates during afternoon trading midweek.

 •  We can also expect Iran war headlines and the upcoming US / China summit later in the week to also affect the markets and possibly mortgage rates any day.

 •  Next on the list will be the release of April's Consumer Price Index (CPI) at 8:30 AM ET tomorrow. This highly important report measures inflation at the consumer level of the economy. The overall reading is expected to be up 0.6% with gas prices still high, while the more important core reading that excludes volatile food and energy costs is expected to rise 0.4% for the month. Favorable news for bonds and mortgage rates will be readings that indicate inflation was softer than thought.

 •  Overall, tomorrow looks to be the most important day of the week for rates due to the influence the consumer inflation data has on the markets and the Federal Reserve. Wednesday and Thursday’s data also has the potential to draw a strong reaction and move mortgage pricing.

 •  There are plenty of Fed speeches scheduled this week, but none of them appear to have a strong chance of affecting rates.

 •  With so much happening this week, it would be prudent to keep an eye on the markets if still floating an interest rate since they can get active without notice.

 • Visit our Daily Commentary page on our site for detailed explanations on current news that is relevant to mortgage rates.

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If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.