Economic data was mixed again this morning and even though certain reports exceeded expectations, numbers are weak overall.
Even though the 10 year treasury is improving today, mortgage bonds are worsening. There is poor demand among buyers for bonds and many sellers. This causes sellers to lower prices to entice buyers. Remember that a Mortgage Backed Security, which directly dictates mortgage pricing is just like a bond in that lower prices equate to higher yields or rates.
So as demand continues to be weak causing prices to move lower, mortgage rates are rising as well. Though we are trending towards improvement since the markets opened, lenders will release rates with higher discount cost from between .125 and .375%
A mid-day price improvement is possible if the upward trend continues. The improvements may be coming from traders realizing that the prices on mortgage bonds are so low compared to 10 year treasury bonds that it's too good of a deal to pass up.