Daily Rate Lock Advisory

Indexes Affecting Rate Lock

Medium

Positive

ADP Employment

November’s ADP Employment report showed only 103,000 private-sector jobs were added last month, falling short of the 127,000 that was predicted. A downward revision to October’s number is skewing the results a little (from 113K to 106K), but we still can label the report favorable for bonds and mortgage rates since it is a sign of slowing labor activity. It is worth noting though, this report is not accurate as an indicator of what Friday’s detailed and more influential governmental Employment report is going to reveal.

Medium

Positive

Productivity and Costs (Quarterly)

We also received good news in this morning’s second release. Revised 3rd Quarter Productivity numbers were announced at 8:30 AM ET. They pointed to stronger productivity or worker output than previously estimated. The headline number was revised from up 4.7% to 5.2%. Furthermore, a secondary reading that tracks labor costs was revised lower by 0.4%. Unfortunately, this version of the report is a bit aged and doesn’t carry a high level of importance in the markets, preventing a stronger impact on this morning’s mortgage rates.

Medium

Unknown

Weekly Unemployment Claims (every Thursday)

Tomorrow’s only relevant data will be last week’s unemployment update at 8:30 AM ET. It is expected to show 223,000 new claims for unemployment benefits were made during the week. This would be an increase from the previous week’s 218,000 initial filings. Rising claims are a sign of weakness in the employment sector. Therefore, the higher the number, the better the news for mortgage rates.

Rate Lock Advisory

Mortgage Rate Trend

Indexes Affecting Rate Lock

ADP Employment

Productivity and Costs (Quarterly)

Weekly Unemployment Claims (every Thursday)

Float / Lock Recommendation