Mortgage rates hit 7-month highs last Friday, but recovered fairly nicely on the first two days of the present week. The past 2 days have been a bit rough, unfortunately. Over that time, the average top-tier 30yr fixed rate rose 0.14% to 6.43%--just a bit higher than last Friday's 6.41%.

Whereas mortgage rate volatility on many recent days have been a function of oil price volatility, the past two days have had more to do with the market's reaction to central bank policy communications. Yesterday, that involved the Federal Reserve's post-announcement press conference. Today is was the European Central Bank (ECB). 

While it may not be the first motivation most people think of when it comes to interest rates, foreign central banks can cause volatility across the globe and today was one of those days. Unfortunately, it was unfriendly volatility--especially earlier in the morning.

With no big-ticket data or central bank events on tap for tomorrow, geopolitical risk stands a better chance to return to the driver's seat for rate volatility.