ROLL OUT THE RED CARPET…for this Friday’s Jobs Report, which could be the “Million Dollar Baby” for Bonds and home loan rates. As Traders wait for this big mover and shaker to saunter down the aisle and “thank all the little people for making this possible”, let’s take a look back at the events leading up to this week.

Inflation. Inflation! Inflation? It remains a bit of a mystery. Last week’s Consumer Price Index Report showed inflation at the consumer level was under control…but then the Fed’s meeting minutes were released, containing several concerned comments by Fed members that inflation may indeed be on the rise. Initial Jobless Claims came in slightly higher than expected, but the more widely watched four-week average fell, and reported the lowest levels since November 2000. The media keeps beating the drum on the so-called "housing bubble", and this sensationalism has wrongfully frightened many people away from purchasing the home of their dreams for the past four years. And again on Friday, The National Association of Realtors reported Existing Home Sales for January at a strapping 6.8 million, showing the housing market is still quite strong.

Bonds and home loan rates rocked and rolled with the news of the week, but with most of the news being economically positive, home loan rates increased by about .125% over the course of the week.

REACH OUT AND TOUCH SOMEONE…AT 30,000 FEET? WE’RE NOT TALKING ABOUT THE MILE-HIGH CLUB HERE. READ THIS WEEK’S MORTGAGE MARKET VIEW FOR LATE BREAKING NEWS ON COMMUNICATION IN THE FRIENDLY SKIES.

So what’s the story for the week ahead? Big stuff…a seriously jam-packed economic calendar, which will likely cause more movement for home loan rates. And in addition to consumer reports on income, spending and housing, the week will also bring updated information on the beleaguered manufacturing front. But most of these reports will pale in comparison to the Jobs Report coming on Friday. As we’ve often seen in the past, the Jobs Report has the ability to not only impact rates on the day of the Report itself, but also set the tone for days and weeks to come.

And take a peek at the chart below, showing Bond price movement over the past six months. Where you see Bond prices trending lower, this is where home loan rates are moving higher, as we’ve experienced over the last several weeks. You can also see that Bonds are reaching a “floor” of resistance…and the Jobs Report will likely be the catalyst for the next trend of Bond and home loan rate direction.

Here’s the scoop. If the number of Jobs reported exceeds expectations of 225,000, this will be bad news for Bonds and home loan rates, especially in light of recent suspicions that inflation may be on the rise. In fact, a fat number could push Bond prices right out of the trading range seen in the chart…and right into higher home loan rates not seen in over six months. But…a lower than expected Jobs number would give Bonds some welcome relief, and cause home loan rates to improve.

Bottom Line...in the absence of big surprises, home loan rates will likely remain near present levels in advance of the Jobs Report.

CAN YOU HEAR ME NOW? GOOD…I GUESS.

It’s finally going to happen. Within the year, the Federal Communications Commission (FCC) is slated to give approval for cell phone use during commercial airline flights.

Cell phone use is still presently banned on airplanes for a few reasons. The FCC bans in-flight use because cell phones can communicate with more than one cell tower at a time while in the air, which could lead to disruption of service for cell phones on the ground, which use only one tower at a time.

And the Federal Aviation Administration (FAA) isn’t on board quite yet. They also ban cell phone use on planes, fearing the wireless signals could interfere with navigation and communication equipment on board. Although the FCC doesn’t feel this is a risk, the FAA has commissioned their own study that should rule conclusively if cell phone use actually poses any danger. And in the meantime, according to an agency spokesman, the FAA would consider lifting the ban for a specific airline, if that airline can prove that cell phone use on their particular aircraft is not dangerous.

Airlines would welcome the move, as they can cash in by taking a share of the fee that travelers would pay for the service.

But not all is sunny skies and smooth sailing – the movement also has some opponents, who fear what a planeload of chatty fliers would sound like. One Internet message board posted this concern:

“…Cell phones on planes? Just consider what it will be like sitting next to the guy who wants to do his full business meeting on the plane, yelling ‘YEAH BOB, I KNOW WHAT YOU'RE SAYING BUT I JUST CAN'T GIVE IN, THERE'S NO WAY I CAN DO THAT - HOLD ON, I CAN BARELY HEAR YOU. OH YOU WANT ME TO SPEAK UP? NO PROBLEM. THANK GOODNESS I HAVE MY CELL PHONE!’ And forget about business, how about teenage lovebirds talking for the entire flight? ‘Oh Chrissie I've got the huuuugest crush on Timmy in 2nd period, hee hee hee! I'm like, sooo into him. I like, can't wait for him to like, ask me out so we can like...like...like each other!’ That sends chills down my spine already, and I can truly see people asking ‘please seat me next to a couple with 2 babies - it's so much more pleasant.’ I’m scared…”

But a reasonable responder posted…“Is someone talking on their phone really any different than that same person talking to someone seated next to them? I don’t see this as being a big problem.” And realistically, with a little common sense and courtesy, in flight cell phone service would offer a major benefit to most travelers.

At some point, approval seems certain. So looking ahead, perhaps when booking a ticket the choices will someday be aisle or window…in the cell-phone or non-cell-phone area of the plane?

It’s Jobs Report time again…and while several potentially high impact reports will hit the stage this week, most attention will be directed to Friday’s big Employment Report.

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

For the week of February 28 – March 4