Today's mortgage pricing was not impacted by yesterday's volatility in the market, which was caused by the hacking of APs Twitter account.

Today, Treasury will auction $35 Billion of 5 yr. notes.  Yesterday's 2 yr. auction had lack luster results.

Germany is beginning to feel the results of a decrease in output and speculation is increasing that the ECB will lower interest rates when it meets on May 2nd.

March durable goods were reported this morning, coming in at its weakest level since last August.  The reaction led to initial improvements in US stock index futures and provided support in the bond and mortgage markets.

Weekly mortgage applications showed an overall increase of 0.2%, with both the purchase and refinance index's increasing by 0.3%.  The purchase continues to climb slowly, showing a positive outlook for the spring housing season.  The index is currently at its highest level since the stimulus efforts of May 2010.

The 10 yr. note continues to remain at its current level of 1.7%, leading to little or no change in mortgage rates.

- Michael Corboy