Mortgage rates for the week ending June 3 remained almost the same from last week, according to Freddie Mac.
The 30-year fixed mortgage rate averaged 4.79%, up one basis point, with an average 0.8 point.
This places the no point rate at around 4.99% and over 25 basis points away from a level that analysts believe would significantly stimulate refinancing activity.
The 10-year Treasury note yields would have to drop to under 3% and closer to 2.8% to get mortgage rates to these levels.
In the other lending programs, 15-year fixed mortgage rates were a basis point lower to 4.20% — its lowest level on record; 5/1 hybrid ARM rates declined to 3.94% from 3.97%, while one-year ARMs were unchanged at 3.95% and is at its lowest since late May 2004.
While mortgage rates are holding at or near record lows, refinancing response is expected to remain muted because of burnout, tight credit conditions, and still poor housing valuations for many borrowers.
For the week ending May 28, the Mortgage Bankers Association reported just a 2.4% increase in the Refinance Index to ~3335 as 30-year mortgage rates averaged 4.78%. As such, supply and prepayment risks are considered minimal.
