Daily Rate Lock Advisory

Indexes Affecting Rate Lock

High

Negative

Employment Situation

This morning’s major economic release was November’s Employment report at 8:30 AM ET that showed the employment sector remained strong last month. It revealed that 266,000 new jobs were added to the economy last month and that October and September's numbers were revised higher by a combined 43,000. Those revisions combined with November’s number pushes the 3-month average above a healthy rate of 200,000 new jobs per month. Also in the bad news column is word that the unemployment rate slipped 0.1% to again stand at September’s rate of 3.5%, which was the lowest since 1969.

Medium

Positive

Employment Situation

In a bit of somewhat favorable news was a 0.2% rise in average hourly earnings. That reading was slightly softer than the 0.3% that was expected. The bond market is sensitive to the earnings figures, but the other two primary headline numbers far outweigh any benefit we may have gotten from the earnings news.

Medium

Negative

University of Michigan Consumer Sentiment (Prelim)

The final report of the week came at 10:00 AM ET this morning when December's preliminary reading to the University of Michigan's Index of Consumer Sentiment was released. It came in at 99.2, exceeding expectations and up a few points from November. That means surveyed consumers felt better about their own financial situations than many had thought. This is bad news for bonds and rates because the more comfortable consumers are with their own finances, the more likely they are to make large purchases that fuels economic growth.

Medium

Unknown

None

Next week brings us the release of several important economic reports along with a couple of potentially influential Treasury auctions and the last FOMC meeting of the year. The calendar is busiest mid-week, but Monday is the only day with nothing scheduled that is relevant to rates. Look for details on all of next week’s activities in Sunday evening’s weekly preview.

Rate Lock Advisory

Mortgage Rate Trend

Indexes Affecting Rate Lock

Employment Situation

Employment Situation

University of Michigan Consumer Sentiment (Prelim)

None

Float / Lock Recommendation