Mortgage rates are being pressured higher this morning in response to a higher open for stocks.  Stocks and bonds compete for the same investment dollar so when the equity markets rally it is often at the expense of bonds.

The US Treasury is set to deliver $21 billion in 10-year notes later this morning.  Yesterday’s $40 billion of 3-year notes went well.  The final leg of the treasury’s biweekly auction comes tomorrow when they’ll auction off $13 billion in 30-year bonds.

There is not much in the way of economic data today so we’ll continue to watch the stock market for leadership.  I don’t feel there is a compelling reason not lock so long as 30 year fixed prime rates are below 5.00% (5.01% APR).

Current outlook: locking bias