We all sat wide-eyed last week, rereading the Zillow weekly mortgage rates to make sure we weren’t misreading them. The 30-year, fixed-rate mortgage came in at 4.38%, up 50 basis points from seven days before. 

But, this week rates seem to be bobbing again, this time dropping. Zillow's [stock Z][/stock] 30-year, fixed-rate mortgage dropped 21 basis points to 4.17%. 

"Last week mortgage rates retreated from a 23-month high as the Fed sought to reassure markets that the wind-down of the stimulus program would be gradual, and contingent upon strong improvement in economic fundamentals," said Erin Lantz, director of Zillow Mortgage Marketplace. 

Lantz noted that market participants will be focused on Friday’s jobs report as an indicator of whether the economic recovery is strong enough to withstand an earlier-than-expected withdrawal of Fed stimulus. 

Lantz seems to be spot on with her predictions. Last week, she told HousingWire there will be more fluctuations to come, including dips back lower.

What has most people concerned is the speed at which the rates are bouncing up and down. Just last week, Freddie Mac reported the 30-year, fixed-rate mortgage posted its largest weekly increase since April 17, 1987, coming in at 4.46%, up from 3.93%.

With all the fluctuation, it will be interesting to see where Freddie's rates fall in its next report.