By James Brooks

The bond market is down 10/32 (2.28%), which should push today's mortgage rates higher by approximately .250 of a discount point.

There is nothing of relevance set for release today. The rest of the week brings us the release of six monthly and quarterly economic reports that may affect mortgage rates in addition to a couple of Treasury auctions. One those reports is considered to be extremely important to the financial and mortgage markets and can cause a great deal of volatility.

The week kicks off at 10:00 AM ET tomorrow morning when March's New Home Sales numbers are posted. This Commerce Department report tracks a much smaller portion of all home sales than last week's Existing Home Sales report did. It also gives us an indication of housing sector strength and future mortgage credit demand, however, unless it varies greatly from analysts' forecasts I am not expecting the data to cause much movement in mortgage rates. Analysts are currently forecasting a slight decline in sales of newly constructed homes. Good news for mortgage rates would be a sizable drop in sales.

April's Consumer Confidence Index (CCI) will also be posted at 10:00 AM ET tomorrow. This index is considered to be an indicator of future spending by consumers. The Conference Board surveys 5,000 consumers from across the country about their personal financial situations. If sentiment is strong or rising, it is believed that consumers are more apt to make large purchases in the near future. However, if they are concerned about issues such as job security and savings, they will probably delay making large purchases. The latter is better for the bond market and mortgage rates because the expected slowdown in spending would keep inflation and economic growth to a minimum. On the other hand, a sizable increase could hurt the bond market, pushing mortgage rates higher. It is expected to show a reading of 122.3, which would be a decline from March's 125.6 reading. The lower the reading, the better the news it is for mortgage rates.

Overall, Friday is the most important day of the week due to the release of three reports being posted, including the highly important GDP reading. Thursday may also be one of the more active days this week. Wednesday is the best candidate for least important day. With such a busy calendar, it is highly recommended that you maintain contact with your mortgage professional if closing in the near future and still floating an interest rate.

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.