By James Brooks

The bond market is down 6/32 (2.43%), which should push today's mortgage rates higher by slightly less than .125 of a discount point.

Today's only relevant economic data was December's preliminary reading to the University of Michigan's Index of Consumer Sentiment just before 10:00 AM ET. It came in at 98.0, well above forecasts of 94.3 and a sizable increase from November's 93.8. This means that surveyed consumers felt much better about their own financial and employment situations than many had thought. Because high levels of sentiment usually translates into stronger consumer spending, this is bad news for bonds and mortgage rates. Fortunately, the data did not draw too much attention, preventing a larger impact on today's mortgage pricing.

Next week looks like it is going to be a pretty active one for the financial and mortgage markets. We have a handful or economic reports, including two key inflation indexes and a very important measure of consumer spending. In addition to the data, there are also a couple of Treasury auctions scheduled along with the last FOMC meeting of the year that is expected to bring an increase in short-term rates from the Fed.

There is no important economic data scheduled for release Monday, but the first of the week's two Treasury auctions that may influence mortgage rates is being held. 10-year Treasury Notes will be sold Monday, although we likely will not see it affect rates until early afternoon trading when results will be posted.

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.