Friday was a fantastic day for Mortgage Backed Securities, which are directly related to mortgage rates.  The trading day ended on a high note indicating that there would be better rates released Monday morning barring some catastrophe.

So far this morning, Mortgage bonds, at first, continued to improve, but have since sold off and are now at levels near-unchanged from Friday afternoon.  

This will equate to better rates this morning simply because many lenders did not reprice on Friday concomitant to the gains realized in the Mortgage Backed Security market.  Still, the downward trend in the last few hours of trading (downward in price, meaning higher in rate), will be of concern to lenders and we might not get the rates we were hoping for.

So this morning may be a good morning to take the risk out of this volatile market and lock.  The rest of the week will be volatile (as every week has been of late!), especially with CPI (Consumer Price Index - a measure of inflation) data being released on Friday.  At this point, floating is not for the feint of heart, and the risks appear to outweigh the rewards, all things considered.