Bond prices are flat this morning as the markets await the Jobs Report due to be released tomorrow morning at 8:30 Eastern Time. You may remember that last month's jobs number reported a surprising loss of 4,000 jobs.
Currently, economists are expecting 100,000 new jobs to be created. If tomorrow's job number comes in higher--or if last month’s number is revised higher--the result should be a significant worsening in Bond prices, which will pressure home loan rates higher. However, a number that shows continued weakness should push Bond prices up…thereby helping home loan rates to improve.
I feel that the bar has been set at the lower level, which may lessen the positive impact if a weaker number is announced, but on the other hand may exacerbate the negative impact on home loan rates if a higher job number is released.
Therefore, while it is difficult to forecast tomorrow morning’s results, I feel it is prudent to play it safe and lock in advance of the release.