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Following the release of the Retail Sales report, benchmark yields rose and MBS prices plummeted. Many lenders released rate sheets at the lows of the day, thus mortgage rates moved higher out of the gates. However, shortly thereafter, benchmark rates began to recover as bargain buyers entered the market at the price lows. Then momentum was added to.....

Yesterday I informed you that the most significant threat to mortgage rates was today's 10 year Treasury note auction and the 30 year bond auction scheduled to happen tomorrow. Well, benchmark yields started rising before the auction even occurred! This forced MBS prices lower and resulted in lenders raising mortgage rates early in the day. Higher rates did not reverse course after the auction either, regardless of strong demand. ...

Reports from fellow mortgage professionals indicate lender rate sheets to be marginally worse when compared to Friday afternoon pricing. However the best par 30 year fixed conventional mortgage rate does remain in the 4.75% to 5.00% range for well qualified consumers. Mortgage rates are more or less holding steady near the lowest levels of 2010 even as benchmark Treasury yields have risen. If you have been sitting on the sidelines waiting to refinance, now is the time. The Fed is about to end its MBS purchase program at the end of the month, while we do not expect mortgage rates to skyrocket, we do anticipate they will move steadily higher. ...

Tomorrow we get the official government numbers on the employment situation. This is the most influential report offered on a monthly basis. I advise locking before this data is released....

The week ahead is busy with the highest impacting report scheduled to be released on Friday morning. Reports from fellow mortgage professionals indicate rate sheets to be slightly worse than the repriced rate sheets of Friday afternoon. The par 30 year conventional rate mortgage continues to hold in the 4.75% to 5.00% range for well qualified consumers....

Yesterday was the first day in awhile that I advised floating overnight. It paid off today. If you are being offered 4.75% costing 1 discount point, I would lock. If your rate moved lower by 0.125% (in rate, not points), I would consider locking. If your mortgage rate did not move lower today (same as yesterday), it is not likely to rise tomorrow even if MBS prices fall, so it is worth it for you to float overnight. I do think interest rates moved a long way in a short time today, with that in mind I am more nervous about letting these gains stay on the table for long. If this becomes a trend I will be more willing to let improvements ride out a few more days. ...

Just like yesterday, mortgage rates moved higher at the open today...and then even higher later in the day as MBS prices fell further and lenders had to reprice for the worse. MBS pricing took a beating today and so did lender rate sheets! While not completely confirmed, this looks to be the beginnings of all interest rates moving higher....