At the start of the month, a significantly weaker than expected July nonfarm payrolls report along with one of the biggest two-month revisions in decades to job growth all but convinced market participants that the data would be enough to finally get the Federal Reserve to cut interest rates.

Inflation held steady in July and ran slightly cooler than expected, increasing the odds of a Federal Reserve rate cut next month.

New economic data releases could increase mortgage rate volatility in the coming weeks, leading up to the Fed's September meeting.