Rates Higher Following Poor Auction

Currently mortgage backed securities are down about .125 in discount on the day.  MBS managed to move higher before the 5 year treasury auction.  The auction didn't go so well and immediately treasuries sold off resulting in higher treasury yields which caused MBS to give up their gains on the day.  There were reports of a lender or 2 repricing for the worse.

Tomorrow there is another treasury auction, the 7 year Treasury notes.  Hopefully it's recieved better than the one today.  If results of this auction are bad we could see MBS move lower in price, moving mortgage rates higher.  If you are planning on closing in the near term, you might want to consider locking your rate. 

We also get Gross Domestic Product(GDP) numbers and jobless claims tomorrow.