Mortgage rates reversed last Thursday’s improvement and rose above last Wednesday’s levels, reaching their highest point since June 10 and staying close to 10-month highs.
Last week’s Fed announcement appears to be driving the move, reinforcing expectations for a potentially higher future rate path and offering less clarity on how that path may unfold.
The rise looked counterintuitive because oil prices and European bond yields were both falling—conditions that on most recent trading days would also pull U.S. bond yields and mortgage rates lower.
That disconnect suggests Fed policy expectations are outweighing usual market correlations, keeping borrowing costs elevated even as other rate-linked signals soften.