With the impressive run we’ve seen so far in addition to the outright levels being close to the year’s lowest, there’s limited incentive to delay locking.  To be sure, rates can definitely continue to move lower, but past precedent suggests the current scenario is typically a better locking opportunity.

Tomorrow brings the important Employment Situation report–the most important piece of economic data in the US on any given month.  It always has plenty of potential to move bond markets (and thus, rates), although the generally strong level of job creation is old news to some extent.  Financial markets may instead focus on other aspects of the report, like the average hourly wage component, because it speaks to inflation.  Inflation is the last major hang-up for the Fed when it comes to continuing to hike rates.  If market participants view the Fed as more likely to hike, present day interest rates will likely rise in advance of the next Fed meeting.