Mortgage rates were unchanged for some lenders today while others were in slightly higher territory.  Either way, that leaves the average lender at the highest levels in more than 7 years.  For what it's worth, there are a few lenders that were slightly worse off for a day or two earlier this year.  In terms of outright levels, the average top-tier scenario is being quoted 4.875% today.

Why so high?  Part of the problem is ongoing.  A strong economy is not good for rates and neither is additional government borrowing--both big issues in 2018.  Those big issues go hand-in-hand with a Federal Reserve that is more willing to hike its policy rate and shrink its balance sheet.  We'll get a fresh update on the Fed's outlook tomorrow, and indeed, that could be part of the reason that rates are staging at long-term highs.

Simply put, the economic data and the supply/demand seen in the bond market (government borrowing creates more supply) look like writing on the wall, spelling out another warning about ongoing policy tightening from the Fed ("tightening" = "higher rates," in general).  Now we're just waiting for the Fed to confirm they're seeing what we're seeing.  That will happen starting at 2pm tomorrow, and it could be a source of this week's biggest dose of volatility for rates.