Tomorrow morning is the all-important monthly employment report, to be released at 8:30 a.m. Eastern. Yes, the employment report is still the top gauge of where we stand economically and it will retain its critical importance in that regard.
However, it will carry significance for an additional reason. The monthly employment report could be a catalyst for the next move in long-term interest rates. With global financial markets on edge about Greece and others (Spain, Portugal and Ireland to name a few), investors have gravitated to the safe haven of U.S. Treasury securities. This has helped bring mortgage rates lower.
But should Friday's employment report show a robust number of new jobs (anything above 200,000 would get investors' attention) for April, this will refocus attention among some investors to the continued rebound of the U.S. economy. Mortgage rates would move up a bit in response.
If the employment report disappoints, this only reinforces the angst investors are currently feeling and would push mortgage rates down some more.
Follow Greg McBride on Twitter