The 30-year fixed mortgage rates dipped below 5% for the first time since the end of March as expected.

The rates are at their lowest levels since mid-February, largely in response to the recent "flight to quality." According to Freddie Mac, the 30-year fixed rate averaged 4.93% in the week ending May 13, down seven basis points from last week.

The GSE also said that 15-year fixed rates fell six basis points to 4.30%, while adjustable rates were lower two basis points to 3.95% on 5/1 hybrid ARMs and by five basis points to 4.02% on one-year ARM rates.

While there might be some refinance response, it should remain limited as housing values remain underwater for many borrowers and credit standards remain tight.

For the week ending May 7, the Mortgage Bankers Association's Refinance Index jumped nearly 15% to ~2431 on the decline in mortgage rates.

As a percent of total applications, refinancing share increased to 57.7% from 51.9% in the previous week.

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