Mortgage rates fell for the second week in a row according to Freddie Mac's weekly survey. The 30-year fixed mortgage rate dropped 12 basis points to 5.20% with an average 0.7 point, and in the past two weeks is down 22 basis points.
Mortgage rates are at their lowest level since the end of May when the 30-year average was 4.91%.
The 15-year fixed mortgage rates declined to 4.69% from 4.77% previously, 5/1 hybrid ARM rates were six basis points lower to 4.82%, and one-year ARM rates also averaged 4.82%, down 12 basis points from last week.
Expectations are for refinancing activity to be more responsive to mortgage rate levels, and even more so if rates move closer toward 5%. Yesterday, the Mortgage Bankers Association reported a seasonally adjusted 15% increase in the Refinance Index to 1708 for the week ending July 3.