Mortgage rates edged just slightly higher again today, capping the sharpest 3-day increase since late June and leaving the average lender more than an eighth of a percentage point higher than they were on Monday.  While an eighth of a point may have been a fairly typical "big week" in previous years, it's been uncommon in 2017--especially since the range of rates began to narrow at the end of October. 

Today's weakness in mortgage rates--although small--is at odds with slight improvements in bond markets (which underlie rates).  Part of the reason is timing.  Bonds weakened into the afternoon yesterday, but few lenders adjusted rate sheets accordingly.  That means they began today at a relative disadvantage--one that's reflected in the rate sheet changes.

The average lender is now quoting conventional 30yr fixe rates of 4.125% compared to 4.0% on Monday.  The underlying improvements in bond markets suggest that the worst may be over for this week's rate spike, but it still makes more sense to be cautious as opposed to aggressive with respect to locking and floating.  In any event, tomorrow is only a half-day for bond markets, meaning rate sheets will err on the conservative side (i.e. lenders won't be eager to offer significantly lower rates).  Bond markets and mortgage lenders are, of course, close on Monday for Christmas.