Traders are treading cautiously ahead of Friday’s big U.S. and Canadian jobs reports. Bond yields are hovering just under their 15-month high.

Most lenders are holding off on further mortgage rate increases ahead of the report. 

Interestingly, only a few lenders chose to raise mortgage rates following December’s big spike in yields. (Why spoil the holidays, eh?)

Looking forward, this Friday’s employment report could be a huge catalyst for rate direction.  It should be:

• Positive for mortgage rates if employment gains are dismal; or
• Negative for mortgage rates if job gains are strong.

Mortgage planners will probably want to have their rate locks ready in case yields happen to explode higher.

Canadian and U.S. employment reports will be released Friday, January 8, at 7:00 a.m. and 8:30 a.m. ET respectively.