Mortgage rates were generally in line with Friday’s latest levels today. Unfortunately, those happened to be the highest in more than 4 years.
Rates are primarily determined by the prices and yields of bonds. The bond market has increasingly been under pressure over the past four months for a few key reasons. One of those reasons has to do with simple supply and demand. The government issues bonds to supplement revenue or to pay for new spending (i.e. 2018’s expected drop in tax revenue created the need to issue more debt). More issuance (i.e. more “supply”) creates lower bond prices and higher rates (prices and rates move inversely).