Friday's bond market has opened in positive territory following the release of favorable employment data. The stock markets are reacting negatively to the news with the Dow down 42 points and the Nasdaq down 12 points. The bond market is currently up 11/32, which will likely improve this morning's mortgage rates by approximately .250 of a discount point.

The Labor Department gave us this morning's data, saying that the unemployment rate rose to 4.6% last month and that only 92,000 new jobs were added to the economy. They also reported that the average hourly earnings rose 0.3%. The unemployment rate was higher than expected and the payrolls number was well below forecasts, leading to this morning's bond rally. The average earnings reading matched forecasts and hasn't influenced bond trading this morning.

This morning's data indicates that the employment sector was not as strong as thought. This is very good news for the bond market and mortgage rates. However, the recent sizable rally in bonds leads me to fear about profit taking by traders that could lead to an upward move in bond yields and mortgage rates. I would like to see some stability in bonds before I can comfortably say that rates are still headed lower. Without that, I am likely to hold the lock recommendations for at least the immediate and short-term periods.

Next week brings us the release of little economic news for the markets to digest. We do however, have another FOMC meeting on the calendar. Look for more details on next week's events in Sunday's weekly preview.

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.