Mortgage rates stayed steady at the lowest levels in more than 3 weeks as financial markets are still accounting for additional risks relating to Turkey.  Simply put, Turkey is in the midst of a debt/currency/banking crisis and investors are worried about some sort of domino effect among banks that are heavily invested in Turkish banks.  All this is worth a bit of "safe-haven" demand for US Treasuries, which offer essentially risk-free returns and a liquid place to park money temporarily.

When investors buy more bonds--all other things being equal--it causes bond prices to rise.  When bond prices rise, investors are technically willing to accept lower interest payments, and it's that part of the equation that speaks to lower interest rates on US Treasuries and mortgage rates.

Bottom line: drama in Turkey boosted demand for US bonds, which helped rates.  

The catch is that there was fresh drama today and another move to weaker levels for Turkish currency, yet US bond markets didn't really respond (that's why rates held steady).  We discussed this risk and the general sense that Turkey is only a temporary benefactor of US rates in last Friday's commentary (here it is, if you missed it).