Both 30- and 15-year fixed mortgage rates were unchanged in the week ending Sept. 23 at 4.37% and 3.82%, respectively, according to the Freddie Mac's weekly Primary Mortgage Market

Meanwhile, ARM rates were mixed, with 5/1 hybrid ARMs slipping one basis point to 3.54% —this matched its record low. Meanwhile, one-year ARMs jumped six basis points to 3.46%.

"The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week," said Freddie Mac Chief Economist Frank Nothaft.

With the market rallying sharply in recent sessions, further declines in mortgage rates likely have occurred and mortgage lenders appear to be in a position to be more responsive to lower rates. 

MBS analysts have said there are signs of growing capacity led by increased competition among lenders, which is further proven by the narrowing of the primary-secondary spread.  If so, refinancing activity should become more responsive once again.

Since the Mortgage Bankers Association's Refinance Index hit a recent peak of 5085 in the week ending Aug. 27 as mortgage rates moved to record lows, the index has declined 14.3% to 4356 as of the week ending Sept. 17.    

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