Mortgage rates were moderately higher today as underlying bond markets continued backing away from their strongest levels in more than 3 weeks (stronger bonds = lower rates). In general, bonds' strength had come at the expense of the stock market, but it was taking more and more drama in stocks to net the same amount of benefit for bonds.
For example, even though the S&P was lower yesterday than it was last Friday, bonds weren't able to make it back to last Friday's levels--something they would have easily done if they were keeping a consistent pace with stock losses. With stocks improving modestly today, bonds were logically weaker. To be fair, this relationship won't always set the tone for bonds, but it has been the biggest consideration this month.
The remainder of the week brings several calendar events that could have an impact on both sides of the market. Long story short, rates are at risk of bouncing higher more noticeably unless they get some serious help. That help would either need to come from surprisingly weak economic data, an even bigger downturn in stocks, or an unexpected headline that implies big economic risks.