Mortgage Blog

We will have around $115 Billion Auction of Tresury this week. The rate will not be good until the confirmation that much supply is not an issue.

The two most important are Wednesday's 5-year Note and Thursday's
7-year Note sales. The last auctions of these securities were met
with very good demand from investors. That led to bond strength
following the sales.

If investor interest is strong again, we can expect the broader bond
market to rally and mortgage rates to move lower. However, lackluster
demand could lead to bond selling and higher mortgage rates Wednesday
and Thursday afternoons.

Let's wait and see.