A jump in U.S. wholesale prices last month looks to have all but erased the possibility that the Federal Reserve will deliver a jumbo-sized half-percentage-point interest rate cut in September, though expectations for a quarter-percentage-point move next month,

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.

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