Mortgages rates fell in the week ending Feb. 24 as yields declined on a flight to quality. 

According to Freddie Mac, 30-year fixed mortgage rates dropped five basis points to 4.95% with an average 0.6 point. 

The no-point rate is currently around 5.1%, which brings a portion of 5% coupons back into the refinancing window. 

This suggests additional gains are likely in next week's mortgage application activity report from the Mortgage Bankers Association (MBA).

Yesterday, the MBA reported a nearly 18% jump in the Refi Index to ~2178 in the week ending Feb. 18 at mortgage rates eased back from their recent highs.

Still around half of the mortgage universe remains out of the refi window. However, for every five basis points decline in rates, about $50 billion moves into the 40 basis point refinancing window, according to Scott Buchta, head of investment strategy at Braver Stern Securities.

Also reported by Freddie Mac is that 15-year fixed mortgage rates averaged 4.22%, also down five basis points from last week; 5/1 hybrid ARMs declined to 3.80% from 3.87%, while one-year ARMs rose one basis point to 3.40%.

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