The lack of them makes another Fed rate cut a little less likely in the near future. The Labor department will release May s employment figures early tomorrow morning. The markets will be looking towards the unemployment rate, number of new jobs added and average hourly earnings data to give us some insight into the labor pool. If we see signs of employment loosening, meaning that unemployment is up or that the number of new jobs added to the economy fell from last month, we should see the bond market rise and mortgage rates fall. However, if tomorrow s report indicates that the labor market remains tight, inflation concerns will drive bond prices lower and mortgage rates higher tomorrow.
Next week appears to be pretty light in terms of economic releases.
There are two scheduled to be posted Tuesday, but nothing the remainder of the week. With the recent slide in stock prices and improvements to mortgage rates, I am becoming a little more cautious of the mortgage market, at least in the short-term future. With the possibility of stocks rebounding sometime in the next week or so and the likelihood of bond traders selling holdings to capture the profits from the recent bond rallies, I see a short-term threat to mortgage rates. Not a reason to panic, but to move forward the next few days with caution. This is only my opinion of what I would do if I was financing a home.