We begin the day with stocks higher and Mortgage Backed Securities, i.e., Bonds, lower, bringing rates down.

The ADP Employment Report indicates an increase of 103,000 jobs created in November, slightly below expectations of 130,000. The previous month’s figure was revised lower from 113,000 to 106,000.

The Mortgage Bankers Association released their Mortgage Application Data for the week ending on 12/1, showing a 2.8% increase. Perhaps someone out there is paying attention and getting prepared.

What does all this mean? It’s more data telling us that the economy is slowing down as expected, nudged or pushed by the Fed rate hikes. This implies that we may see those Fed rate cuts sooner rather than later. It also means we should start seeing further declines in mortgage rates. So, get ready, put on your seatbelt, and get pre-qualified.

My idea is simple: look forward, not backward. It’s almost impossible to drive a car while constantly looking through the rearview mirror.