Here we go again; the stock market is giong to open weaker this morning after trying to recover from Monday's decline yesterday. The early iompact has interest rates falling on treasuries and in the mortgage markets. At 9:00 the 10 yr note +27/32 at 3.41%, breaking resistance at 3.48% and clearing the way to a run to 3.28%, the low yield tagged back in early July. Mortgage rates will work lower along with the treasury market as long as the long awaited equity market correction continues. The DJIA index at 9:00 down 86 points.

The weekly MBA mortgage applications data is the only economic read today. The overall index was up 5.6%; the purchase index rose 3.9% in the Aug. 14 week for a third straight gain. The refinance index rose 6.9%. The report said the refinance index has been swinging back and forth in line with changes in mortgage rates while the purchase index has been moving gradually upward. The refinance share of mortgage activity increased to 53.3% of total applications from 52.3% the previous week. Mortgage rates swung lower in the week with 30-year loans down nearly 25 basis points to an average 5.15% with points decreasing to 0.98 from 1.18 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.