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Mortgage interest rates are directly tied to Mortgage Bonds.  When Mortgage Bonds go up rates go down.  Today Mortgage Bonds are trading higher in response to worse than expected employment data as well as weakness in Stocks.

In the news, Initial Jobless Claims increased more than expected, indicating ongoing weakness in the labor market. The ISM Manufacturing Index also came in slightly worse than expected. There was some good news, as Pending Home Sales were reported far above expectations and Personal Spending for August rose at its fastest monthly pace in almost 8 years, thanks in large part to the "Cash for Clunkers" program.

Currently, Mortgage Rates are still near all-time lows and present an incredible opportunity for a borrower. For now, I recommend floating into tomorrow's Jobs Report. But be prepared to lock if today's announcement of next week's Treasury auctions causes the markets to stir.