Freddie Mac reported modest increases in fixed rate mortgage rates for the week ending July 23.

The 30-year fixed rate rose six basis points to 5.20% with an average 0.7 point, which suggests a no-point rate nearer to 5.40%.

The 15-year rates increased to 4.68% from 4.63%, while one-year ARM rates averaged 4.77%, up just one basis point from last week, and 5/1 hybrid ARM rates declined nine basis points to 4.74%.

After slipping early last week, mortgage rates began increasing through the end of the week with the 10-year Treasury yield jumping 35 basis points.

This caused mortgage application activity to slow, with the Refinance Index increasing just 4% to 2090 for the week ending July 17 compared with a 36% jump over the previous two weeks as mortgage rates improved from 5.42% to 5.14%.

Borrowers appear to be sensitive to mortgage rate levels and a significant response to refinancing activity tends to be seen as rates move closer to 5%.

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