By James Brooks

By The bond market is down 15/32 (2.18%), which should push Raleigh area mortgage rates higher by approximately .125 of a discount point.

Today's only relevant economic data was June's Consumer Confidence Index (CCI) at 10:00 AM ET. The Conference Board announced a reading of 118.9 that exceeded forecasts of 116.7. It was also an increase from May's revised 117.6, indicating surveyed consumers were more optimistic about their own financial situations than they were last month. Because higher levels of consumer confidence usually translate into stronger levels of consumer spending that fuels economic growth, today's news was negative for bonds and mortgage rates.

Today also has the first of this week's two Treasury auctions that may affect mortgage rates. These sales may influence broader bond trading enough to change mortgage rates slightly if they show overly strong or weak investor demand. 5-year Notes are being sold today while 7-year Notes go tomorrow. If they are met with a strong demand, we could see bond prices rise later today. This could lead to afternoon improvements to mortgage rates also. On the other hand, if the sales draw a lackluster interest from investors, mortgage rates may move slightly higher during afternoon trading these days. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon hours.

There is no relevant economic data scheduled for release tomorrow. It likely will be a fairly calm day for mortgage rates unless something unexpected transpires. The 7-year Note auction can lead to a small change in rates, but has little chance of causing a significant move.

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.