Mortgage rates are higher today

as mortgage bonds reverse most of the gains seen earlier this week. Feelings that the economy is on its way to a recovery are dominating trade today causing the 10yr note yield to rise to just over 3.4%, indicating lower demand for US debt. The Dow and the dollar are both showing strength, causing commodity prices to fall along with mortgage bonds and treasuries. There is no more economic data to be released today, so hopefully the board is set. But if stocks rally we could see continued weakness in the fixed income markets.