Today is a good morning for mortgage rates.
In economic data:
1. Week over week and year over year change of store sales were 1.7% and 1.6% respectively.
2. The ISM business activity level index came in at 41.9 amazingly lower than the expectation of 53.0. This is one of the key factors driving interest rates down today. A week showing in business activity indicates recession is more possible than the bulls have been thinking. Here's a link to CNBC's coverage of the problem: http://www.cnbc.com/id/23009011
In Mortgage Backed Securities, the 5.0 coupon is up 13/42nds and the 5.5 coupon is up 9/32nds.
This should equate to rate improvements today of roughly .25 of a discount point.
Basically, the market is concerned about recession, so there is a "flight to safety" which means traders are buying bonds. When people are buying bonds, the prices go up. When prices go up, the rates go down.