Fixed mortgage rates moved higher, according to Freddie Mac's weekly survey. The 30-year fixed mortgage rate averaged 4.91% with an average 0.7 point, up from 4.82% last week.

For the month of May, rates averaged 4.86%, a modest five basis points higher than April's average. Despite the modest increase in mortgage rates, the Mortgage Bankers Association's (MBA) Refinance Index is down 26% in the first three weeks of May from April's average, and the decline is likely to increase based on this week's rates action. In turn, this could lead to downward revisions to June prepayments (released in July), which are currently projected to increase around 10%.

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