Mortgage rates drifted slightly higher this morning with the average lender moving up to the highest levels in nearly 2 weeks. Top tier 30yr fixed scenarios are effectively back at 7% for the majority of lenders.
This wasn't necessarily destined to be the case at the beginning of the day, but the bond market lost ground early, forcing lenders to issue mid-day rate increases. As the day progressed, bonds found their footing, and many lenders were able to undo the changes made earlier in the day.
All of the movement mentioned above is insignificant compared to what we may see over the next 2 days. Tomorrow morning's Consumer Price Index (CPI) is one of the biggest sources of volatility for rates on any given month. The following afternoon, we'll get the Fed's verdict on the "pause/skip" in the rate hike cycle, which is currently what the market expects.
CPI could theoretically be high enough for traders to change their outlook on Wednesday's Fed rate decision. Even then, the Fed's updated outlook for the Fed Funds Rate (also released on Wednesday afternoon) has just as much power--if not more--to cause volatility for rates/bonds.