Mortgage rates moved higher for the first time this week, ending a 3-day run at the best levels since mid-October.  Today's rates are roughly in line with those seen on November 3rd. 

Compared to yesterday's closing levels, bond markets (which dictate mortgage rates) are roughly unchanged today.  That typically corresponds with relatively unchanged mortgage rates.  Today's departure from the norm is due to bond market weakness yesterday afternoon, which came on too gradually and too late in the day for most lenders to adjust rate sheets accordingly.  Moreover, bond markets were actually in weaker territory this morning when lenders released today's rate sheets.  That means they had to account for yesterday's bond market weakness as well as the additional AM weakness today. 

The bounce back in bond markets (this afternoon) suggests lenders have some room to offer rate sheet improvements, but so far, only a few have made any changes.  That means many lenders will have some wiggle room tomorrow morning and that rates would likely be slightly lower if bond markets don't move much overnight.

To simplify all of the above, as we discussed yesterday, small red flags in markets translated to slightly higher rates today, and tomorrow can once again be viewed from a more neutral standpoint.