By James Brooks

The stock markets are showing minor losses with the Dow down 12 points and the Nasdaq down 1 point. The bond market is currently up 12/32, which should improve this morning's mortgage rates by approximately .125 of a discount point.

There is no relevant economic data scheduled for released again today. After gains in bonds yesterday and this morning, the benchmark 10-year Treasury Note yield currently stands at 2.81%. This move started after Friday's surprise in November's Employment report, although it has come with no economic data. This bodes well for mortgage shoppers as rates tend to follow bond yields. However, we do get some key economic data later in the week that we need to be very cautious of.

Tomorrow doesn't have any economic data set for release either, but we do have the first of this week's two Treasury auctions that have the potential to influence mortgage pricing. 10-year Notes will be sold tomorrow while 30-year Bonds go Thursday. Tomorrow's auction is the more important one and will likely have a bigger influence on mortgage rates. Results of the sales will be posted at 1:00 PM ET each day. If they are met with a strong demand from investors, particularly international buyers, we should see strength in the broader bond market and improvements to mortgage pricing during afternoon hours. On the other hand, a weak interest in the auctions could lead to upward revisions to mortgage rates after results are posted.

November's Retail Sales and Producer Price Index (PPI) will be released Thursday and Friday morning respectively. We will also get last week's unemployment numbers Thursday morning, but the other two reports are expected to cause much more movement in the markets and mortgage rates.

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... Lock if my closing was taking place over 60 days from now.