Mortgage rates moved moderately higher today as bond traders adjusted their holdings for the end of the month.  Mortgage rates are dictated by trading levels of mortgage-backed securities (which in turn, tend to move in step with US Treasuries, generally speaking).  Many traders are tasked with making certain trades by the end of the month.  Sometimes that has a noticeable effect on how rates move, and today was one of those days. 

Unfortunately, it wasn't in a friendly direction.  The day began with promise, however.  In fact, many lenders were in better shape this morning vs Friday afternoon.  But the market volatility began to take its toll as the PM hours approached, and virtually all lenders recalled initial rate sheets and moved higher. 

In some cases, that will merely mean higher closing costs for yesterday's prevailing rates.  In other cases, borrowers could see rates move up by .125%.  The most prevalently-quoted conventional 30yr fixed rate for top tier scenarios remains 4.0%, with slightly fewer lenders offering 3.875% today vs Friday.

Today's mid-day changes could merely be a warning shot.  The rest of the week stands the chance to be exceptionally volatile.  The Fed placed a lot of emphasis on the next 2 weeks of economic data between now and their September meeting.  The current week is certainly the biggest in terms of the scheduled data.  Even though Fed rates don't dictate mortgage rates, any major changes in the expectations for Fed action will affect the entire market.  That means today could end up being one of the tamer days of the week by the end.