Mortgage rates moved off their record lows this week, according to Freddie Mac's weekly survey.

The 30-year fixed mortgage rate averaged 4.81% with an average 0.7 point for the week ending Dec. 10, up 10 basis points from last week. 

The 15-year fixed rates increased five basis points to 4.32%, while five-year hybrid ARM rates reported at 4.26% versus 4.19% previously.

Only one-year ARM rates were lower — by one basis point — at 4.24%, which is a new record low.

While mortgage rate levels remain at historically attractive rate levels, application activity is expected to show a muted response. Last spring when mortgage rates were at current levels, the Refinance Index was in the 5000+ to 6000+ area. However, for the week ending Dec. 4, when rates hit a new record low of 4.71%, the Refinance Index was just over 3,100.

Barclays Capital analysts said that to get a response similar to April's level, the no-points rate needs to be around 35 basis points lower.

They noted in April, the no-points rate was just under 5% at 4.98%, but to get a refinancing wave in motion now, they believe it needs to drop below 4.63%.

The limited response is attributed to a reduced universe of borrowers with an incentive to refinance versus earlier this year, and to credit burnout related to the tight underwriting standards.

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