• Thursday’s mortgage rates should be close to Wednesday’s early pricing after this morning’s economic news erased overnight bond losses. The bond market is currently unchanged (4.49%).

• Stocks are mixed with the Dow up 100 points and the Nasdaq down 10 points.

• Yesterday’s 10-year Treasury Note auction did not go as well as hoped. The benchmarks we use to gauge investor demand showed a below average level of interest in the securities. We saw a small negative reaction in bonds after results were announced at 1:00 PM ET, but it was not enough to cause an intraday upward revision in rates.

• This morning’s sole economic release was last week’s unemployment update that showed 231,000 new claims for benefits were filed. This was a large increase from the previous week’s revised 209,000 initial filings and higher than the 212,000 that was expected. It was also the highest number since August of last year.

• There is also a 30-year Treasury Bond auction taking place today. Results of it will be announced at 1:00 PM ET, making this an early afternoon event for the bond and mortgage markets. For it to cause an improvement in rates, we need to hear there was a strong demand from investors.

• Tomorrow brings us the week’s only monthly piece of economic data with the release of May's preliminary reading to the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. If consumers are more confident in their own financial situations, they are more apt to make large purchases in the near future. It is expected to show a reading of 76.8, down from April's final reading of 77.2. The smaller the reading, the better the news it is for rates.

• 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.