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It really didn't. Not today at least. It did yesterday though, and Monday, and Tuesday, and Wednesday. After a streak of worse than expected economic data releases, a pessimistic perspective took hold of financial markets. Stocks have been scorned and investor funds have poured into the bond market. The "flight to safety" has led benchmark interest rates to year over year lows and pushed mortgage-backed securities to record price levels. Rising MBS prices allowed lenders to move mortgage rates to lifetime lows this week. Those lifetime lows are generally still in tact after the release of the Employment Situation Report today, consumer borrowing costs (closing costs/discount points) are at most 0.125% (of your loan amount) more expensive....

Mortgage rates moved a few basis points lower yesterday after the bond market experienced what AQ and MG refer to as a "forced rally". Stocks were selling the dollar was stronger and the market was generally nervous about a weak Jobs report after Goldman Sachs revised their Non Farm Payrolls forecast for the worse. This equation resulted in a heavy flight to safety rally in the fixed income market which essentially snowballed as market participants looked to keep up with rapidly appreciating prices. As a result, mortgage backed securities prices closed at levels not seen since May. Following the rally in Treasury and MBS markets, lenders republished rate sheets for the better and consumer borrowing costs fell. Reports from fellow mortgage professionals indicate the par 30 year conventional mortgage rate has dipped to 4.5% to 4.75% range for the best qualified. To secure a par rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. If you are seeking a 15 year fixed rate, you can expect a par rate from 4.00% to 4.25%. ...