Mortgage bonds continue to struggle, as there is no significant catalyst to help propel them higher. They are currently in a some-what sideways pattern, stuck between resistance and support. If we are lucky, we will continue in this sideways trend until there is news worthy of making bonds move in one direction or another. However, there is still significant risk that markets will push bonds lower, causing rates to take another .25% move higher as we have been discussing lately. In truth, it is not a matter of if, it is only a matter of when. Given the strength of the slow grind higher in mortgage rates, we will suggest a locking bias. We see no real reason to take risk in hopes of improving interest rates. The risk to the downside is much higher than the potential benefit of floating.