Just when it looked like something new and different might be happening in the mortgage rate world, the market is quickly back to its old ways.
After cresting 8.0% last week for a top tier 30yr fixed rate, the average lender was as low as 7.90% yesterday. 24 hours later and most of the improvement has vanished. The average isn't quite back to 8.0%, but close enough.
Frustratingly, there are not big, obvious motivations for the weakness. Normally, we could point to some economic report or headline event causing market volatility. In this case, it's all part of the bond market's process of range-finding and consolidation as it prepares to digest the next few key events.
Tomorrow's economic data is sort of an appetizer for the actual key events that arrive next week. Those include the Fed announcement on Wednesday, but especially the big jobs report on Friday.