Mortgage rates near unchanged

as mortgage bonds fail to hold onto yesterday afternoon’s gains this morning. Despite GDP and home sales data coming in less than expected the market is still reading it as a sign of an improving economy. Mortgage applications fell off a cliff last week due to higher rates and government modification data was less than stellar with a 50% re-default rate. Treasuries are losing ground as the 10-year yield pushes up to 3.352% at the moment. The market is still very thin and choppy and tomorrow is a data packed day of durable goods, personal income and spending, inflation, jobless claims, consumer confidence and new home sales.