Mortgage rates moved slightly higher today as trade war fears waned for financial markets.  There's not a direct connection between trade issues and mortgage rates, but like any prominent financial news, there are usually only a few degrees of separation. 

In the current case, stocks had moved quickly lower in recent weeks as the trade war potential increased.  That weakness ultimately threatened to push stocks below early February's "crash" levels.  Investors assumed that additional weakness would follow if that line in the sand is crossed.  With that in mind, the bond market got in position to soak up some of the panic money fleeing from the stock market.  When there is extra demand for bonds, bond prices rise and interest rates fall--all other things being equal.  From there, the bonds that underlie mortgage rates are another degree removed, and then lenders' utilization of those bond prices in deriving a final rate sheet is yet another degree beyond that.

In other words, it takes a pretty big move near pretty important levels in stocks to get a rise out of the bond market.  Today's increase in mortgage rates was relatively incidental in the bigger picture.

Tomorrow brings the important "Employment Situation"--the big jobs report that often acts as a jumping-off point for bigger trades (and thus bigger potential movement in rates).