There are no economic reports scheduled for today or tomorrow.  The market is waiting for Wednesday, when Ben Bernanke will testify to the JEC on the state of the economy and will release the minutes from the May FOMC meeting.  The April existing homes data will also be issued on Wednesday.

The impact of these reports will be interesting, with markets presently debating when the Fed will begin unwinding the QE's and market annalists wondering what impact a reduction in MBS purchases will actually have.

It is unlikely that Bernanke will begin winding down the QE's until there is more economic data confirming that the economy has in fact gained momentum.

With the Memorial Day Holiday on the horizon it is likely to see a reduction in trading volume.
The 10 yr. note closed at 1.95%, a level that is expected to keep rates elevated for the near future.  Technically, the 10 yr. note will have to fall below 1.80% to expect any improvements and reduction in rates.

ADVICE:  Position yourself to take action on any market improvements.  Have your application and submittal package ready to go so that your mortgage specialist is able to lock immediately.

- Michael Corboy