"With respect to yesterday’s episode in the mortgage market -- yes, it is as bad as you can imagine. Yesterday, the mortgage market was so volatile that banks and mortgage bankers across the nation issued multiple midday price changes for the worse, leading many to ultimately shut down the ability to lock loans around 1pm PST. This is not uncommon over the past five months, but not that common either. Lenders that maintained the ability to lock loans had rates UP as much as 75bps in a single day."
http://globaleconomicanalysis.blogspot.com/2009/05/mortgage-market-locks-up.html
update here http://globaleconomicanalysis.blogspot.com/2009/05/dear-mortgage-refinance-applicant.html
Government is adding uncertainty to the market. Something it does best.