Mortgage rates moved higher at a pace that was probably quicker than the average homebuyer would like yesterday.  That was part of a 4 day move leading back up from the lowest levels in more than a year (or close to them, depending on the lender).  That 4-day move could have easily been quite a bit longer, and it still could be, as long as we overlook today's market movement.  Thankfully, it's taken rates back in a friendlier direction.

At issue is the unexpected flare-up in British politics surrounding Theresa May's referendum gambit yesterday.   To be fair, the gambit was unexpected, but the flare-up makes perfect sense.  Long-story short, if May is ousted (and that seems likely), it creates uncertainty surrounding a major economy and financial center.  It also makes a "no-deal" Brexit more likely, which is generally seen as detracting from European economic growth prospects.  All other things being equal, lower economic growth coincides with lower interest rates.

Naturally, rates in the UK moved more than in the US on this news, but in a globally interconnected market, US rates still get some benefit.  The average mortgage lender is about halfway back to rates seen on Monday, with the most prevalent conventional 30yr fixed quotes remaining in the 4.125% range for top tier scenarios.