Mortgage rates surged higher today, with most lenders ending up back in line with the 4-year highs seen on Friday afternoon.  At issue--among other things--is the fact that the stock market has been unwilling to continue offering up a fresh supply of drama.  Earlier in the week, that drama helped rates bounce lower in a way that bordered on optimistic.  Even so, it didn't make much sense to get too hopeful, which is why we noted that any tactical opportunities to float one's rate had passed as of yesterday. 

There was actually some room for hope earlier this morning, but it didn't last long.  Without ongoing stock losses, bonds (which dictate rates) just aren't interested in going against the prevailing momentum yet.  A somewhat poorly-received Treasury auction in the afternoon kicked the weakness into high gear.  In other words, investors weren't eager to buy 10yr US Treasury debt below 2.80%.  Lower investor demand for longer-term bonds means prices move lower, and lower bond prices mean higher rates.

Assume rates can continue to move higher until we see clear evidence to the contrary.  Rest assured, whenever that evidence emerges, you'll hear it here first.