The month’s most important Report is about to be released… That’s right, and notice the whispers about this Friday’s monthly Jobs Report. Remember last month’s Jobs Report arrived as quite a surprise… economists were expecting around 110,000 new jobs being added for the month, but were shocked and demoralized to see a net LOSS of 4000 jobs! Remember that a weak economic read of this sort hurts the Stock market, but causes the Bond market to improve… and as Bond pricing improves, so do conforming home loan rates. And last month’s surprising miss meant that home loan rates improved by .125% on the day of the Report alone.

So what’s in store for this Friday? Last month’s surprise means that the release of this upcoming Jobs Report will draw even more attention than normal. How many jobs were created last month…or not? And will last month’s ugly number be revised higher…or lower still? Rest assured that Friday morning at 8:30am ET, traders, economists and investors will be glued to the financial news – and Bonds and home loan rates will likely react in turn. Another weak number will result in Bond pricing moving higher and conforming home loan rates moving lower, especially if no major revisions are made to last month’s weak number. But if the tables turn and show surprisingly strong job growth, Bonds and home loan rates will likely worsen on the headline.

Bonds continue to fight a battle at the tough 200-day Moving Average. If the news of the week helps Bonds remain above this line, that will be good news for home loan rates, as the 200-day Moving Average will act as a “floor of support”. But if the news causes Bonds to fall beneath this line in the sand, it will be bad news for home loan rates, as the 200-day Moving Average will then act as a “ceiling of resistance”.