By James Brooks

The bond market is down 6/32 (2.40%), which should increase today's mortgage rates by approximately .125 of a discount point.

Today also has nothing of importance scheduled. Unfortunately, that leaves little to be optimistic about in terms of bond and mortgage rate direction the next couple days. With the benchmark 10-year Treasury Note yield on the rise again, we start worrying about important resistance points. If it moves above 2.42%, the next stop may be well above 2.50%. Since mortgage rates tend to track bond yields, this would be troublesome for mortgage shoppers.

Tomorrow has no relevant economic data set for release, but it does bring us the first of this week's two important Treasury auctions. 10-year Notes will be sold tomorrow while 30-year Bonds go Thursday. Results of the auctions will be posted at 1:00 PM ET each day. If they are met with a strong demand from investors, we could see bond prices rise enough during afternoon trading to cause downward revisions to mortgage rates. However, lackluster bidding in the sales, meaning longer-term securities are losing their appeal, could lead to higher mortgage pricing.

We do have some important economic data coming later this week. We will get two important inflation readings and a key report on consumer spending along with a consumer confidence report. This means that it is likely the most movement in mortgage rates this week is still ahead of us.

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.