Mortgage rates fell decisively today--at least in the context of the recent range--thanks primarily to heavy losses in the stock market. Stocks are far from the only consideration for interest rates, and many times, there's no correlation between the two on any given trading day. But when stocks are losing ground quickly, investors seek shelter in several safer places--one of them being the bond market. More demand for bonds means lower rates.
All of the above having been said, over the past two days, I've made it a point to talk about the inconsistent behavior between mortgage rates and bond market movement. In short, mortgage rates weren't doing a good job of following the market. This was mostly a factor of timing, and we just needed to see bond markets hold onto recent gains with less volatility. Today was our lucky day in that regard, and lenders' rate sheets confirm it.
The average lender is now quoting the lowest conventional 30yr fixed rates in 2 weeks. Keep in mind, "lowest rates" refers to the overall cost of financing between the actual interest rate and the lender charges/credits associated with that rate. In some cases, the interest rate (or "note rate") may be exactly the same as 2 weeks ago, but in those cases, the upfront lender costs should be lower (or the lender credit should be higher).