Mortgage rates moved lower again today as stock markets tumbled.  The weakness in stocks was led by the European banking sector with several big names falling roughly 8 percent!  Although mortgage rates in the US are by no means a factor of European stock prices, nothing too big happens in global financial markets without its effects being felt elsewhere.  Today's stock weakness was big enough that investors sought safer havens, which typically include the US bond market.  As money comes into the bond market, investors are willing to pay more for debt, such as the kind that's created by pools of mortgages.  Lenders are then able to offer lower mortgage rates.

All that to say that mortgage rates fell to their lowest levels in about 2 weeks today.  It wasn't a big move versus yesterday as rates were already near 2 week lows.  In fact, several lenders aren't in noticeably better shape depending on how they handled yesterday's market weakness (the ones that kept rates lower yesterday were less likely to be offering big improvements today).  On average, 3.625% remains the most prevalently-quoted conventional 30yr fixed rate for top tier scenarios.  

We'll increasingly see a precious few of the most aggressive lenders begin offering 3.5% again if bond markets continue to improve from here.  Whether or not that happens remains to be seen, but today was an important victory for rates.  If we'd lost ground, it would have confirmed a negative signal about momentum in the short to medium term.  Now we have a fighting chance to see if momentum can build in a friendlier direction.