Freddie Mac reported 30- and 15-year fixed mortgage rates edged two basis points higher to 3.90% and 3.13%, respectively, in the week ending April 19.
Levels, however, are just slightly above their recent record lows of 3.87% and 3.11%. Meanwhile, ARM rates were mixed with 5/1 hybrid rates dropping seven basis points to a new record low of 2.78%, while one-year ARM rates rose to 2.81% from 2.80%.
This should keep refinancing activity near current levels. Yesterday, the MBA reported a 13.5% jump in the Refinance Index to 3936 in the week ending April 13 as rates declining from 3.98% spurred activity. As the prior week was not adjusted for slowing related to the Good Friday holiday, this also factored into the strong gain.
Breaking down the refinancing activity, the Conventional Refinance Index surged nearly 17%, while the Government Refi Index fell over 6%.
Deutsche Bank Securities analysts said the conventional activity is the "clearest sign" that the recent changes to Home Affordable Refinance Program or HARP are kicking in.
