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Tomorrow is Good Friday and trading volume will be thin.  That means that mortgage rates will be extra jumpy in the face of the Non-Farm Payrolls report.

Right now, markets are expecting to see 120,000 new jobs created in March, but watching trading activity, many traders seem to be placing bets that the actual number will be lower than that.

This has created a bad situation for rate shoppers.

If the number comes in lower than 120,000, markets will not react much because that figure seems to be priced in to mortgage bonds already.  If the number comes in as expected (or higher), traders will have to quickly change their positions and that will cause mortgage rates to move higher.

In other words, there's very little upside and a ton of downside. 

The lack of liquidity because of the holiday will only add oomph to the rate swings we see in response to tomorrow's data.

If you're shopping, now would be a good time to lock -- if only for protection from tomorrow's data.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.