Treasury Auctions (5,7,10,30 year securities)
The Treasury will sell 5-year Notes Tuesday and 7-year Notes Thursday. They will tell us if there is an appetite in the markets for medium-term securities. If investor demand in these sales is strong, particularly from international buyers, the broader bond market should move higher, pushing mortgage rates lower. But a lackluster interest from investors could lead to bond selling and higher mortgage pricing. The results of the sales will be announced at 1:00 PM ET each day, so any reaction will come during afternoon trading Tuesday and/or Thursday.
Overall, Wednesday is the most important day of the week, particularly the afternoon hours. Thursday is worth consideration also. Tomorrow is the best candidate for calmest day for mortgage rates, but we may see movement then also. I believe we are going to see a fair amount of volatility in the markets and mortgage pricing this week. Therefore, please proceed carefully if still floating an interest rate and closing in the near future.