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There is nothing of relevance being released today, so any significant movement in bond prices and mortgage rates would likely come from a large swing in the major stock indexes. If they extend their current gains by a lot, or reverse coarse to post a sizable loss, we could see mortgage rates revise accordingly later today.

As we saw with yesterday’s bond rally, the mortgage market was not too impressed despite the significant stock selling. It appeared that yesterday’s gains were not expected to hold, which at least at the moment appears to be fairly accurate. This is fairly important because it indicates that mortgage bond traders don’t expect bond prices to remain near current levels. We should take that as another cautionary sign towards near-term mortgage pricing.

Next week brings us the release of several moderate or fairly important economic reports along with two semi-relevant Treasury auctions and a speaking engagement from Fed Chairman Bernanke. None of the economic reports are considered to be highly important, but a couple of them do carry enough significance to influence mortgage rates if they show surprising results. Look for details on next week’s events in Sunday’s weekly preview.

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... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

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