Bonds sell off. Mortgage rates follow suit

Bonds woke up angry this morning following yesterday’s sell-off, and are now struggling to regain their footing and move back above an important level of support.
On the news front, Initial Jobless Claims were slightly higher than expectations and continue to be a drag on the economy. However, continuing claims fell by 148,000 to 6.69 million, which is the largest one-week drop since November of 2001.
Next week brings another round of Bond supply from the Treasury, which could weigh on the Bond market. Therefore, I recommend locking but I will let you know if Bonds are able to reverse course and muster another rally.
Currently rates are trading in the 5.5% range for a 30 day lock on a 30 year conforming loan for a point in origination.