For the 3rd time this year, the S&P avoided making new intraday lows, and for the 3rd time this year, mortgage rates moved higher.  I am not a fan of reducing mortgage rate movement to something that merely mimics and traces stock market fluctuations, but for the most part, that's been the only game in town in 2016.  Rates are clearly paying attention to equities markets, albeit indirectly. 

We might even say that rates look nervous about a potential bounce in equities markets.  For instance, stocks only really held sideways near Friday's closing lows yet mortgage rates were noticeably higher.  We haven't even had the opportunity to see how rates will respond if stocks have a few solid days back-to-back.  Things could conceivably be much worse, so it makes sense for rates to look a bit nervous whenever the 2016 stock meltdown takes a day off.