By James Brooks

The bond market is down 15/32 (2.27%), we should see a increase in today's mortgage pricing by .125 of a point.

The Conference Board gave us this week's only monthly data with the release of their Consumer Confidence Index (CCI) for December at 10:00 AM ET this morning. They announced a reading of 96.5 that exceeded forecasts by several points (93.5), indicating that surveyed consumers felt better about their own financial situations than many had thought. Because it is believed stronger confidence usually translates into higher consumer spending levels, this is bad news for bonds and mortgage rates.

We also have the first of this week's two Treasury auctions that may influence rates taking place today. 5-year Notes will be sold today while 7-year Notes go tomorrow. If these sales are met with a strong demand, bond prices may rise enough to lead to improvements in mortgage rates shortly after the results are posted. But a lackluster investor demand may create bond selling and upward revisions to mortgage rates later today and/or tomorrow afternoon. Results will be announced at 1:00 PM, so any reaction will come during early afternoon trading.

There is no relevant economic data scheduled for tomorrow. I suspect it will be a fairly quiet day in the bond and mortgage markets except for possibly some year-end position selling or buying. Stocks could also affect which direction bonds and rates move tomorrow as can the Treasury auction.

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... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.