There was a significant increase in mortgage rates … at the short end of the curve (e.g. 1 year-ARM, 3-year ARM, etc). The FED only exerts influence directly on very short term rates. Longer term rates (e.g. 30-year fixed) are set by the market, which responds to a variety of factors including anticipation of future inflation, direction of the economy, relative exchange rates, interest rate velocity, economic shocks, etc.

I’m no expert, but sometimes the market gets the opinion that the FED has tightened sufficiently (or too much) and this suppresses the longer term rates. For example, currently the market believes that the economy is slowing, that inflation is not a threat and demand for longer-term bonds suppresses their yield, relative to the short-term bonds.

If you can make sense out of the bond markets you can make a lot of money. But many times it appears to have a life of its own and follows its own rules.