This morning’s durable goods report from the Commerce Department has added to the uncertainty of the economic outlook.  The report showed a decline in durable goods orders for June when the markets were expecting a small increase.  Bad news for the economy is often good news for mortgage rates.

The US Treasury will auction $37 billion in 5-year notes today.  Recently 5-year note sales have not been as successful as 2-year and 7-year’s so we’ll need a keep an eye on this.

The technical outlook for interest rates is not encouraging.  The safe play is to lock in.

Current outlook: locking