Mortgage rates surged in the week ending Feb. 10. According to Freddie Mac, 30-year fixed mortgage rates averaged 5.05% with an average 0.7 point, up 24 basis points from the previous week.
This places the no point rate at over 5.20% and pushes the 5% coupon out of the refinancing window.Mortgage rates were last at 5:00% or higher in late April/early May of 2010.
Higher mortgage rates are impacting refinancing activity. Yesterday, the Mortgage Bankers Association reported a 7.7% drop in the Refinance Index to ~2087 for the week ending Feb. 4, while refinance share dropped to its lowest level since early May at 66.6%.
Freddie Mac also reported 15-year fixed mortgage rates jumped 21 basis points to 4.29%; 5/1 Hybrid ARMs gained 23 basis points to 3.92%, while one-year ARMs were up nine basis points to 3.35%.