The increase in mortgage rates should limit mortgage refinancing activity with the exception of HARP related activity.

Yesterday, the Mortgage Bankers Association reported a 12.1 percent jump in activity despite higher mortgage rates as activity recovered from the December holiday-related slowdown. Still at 3957 on the Refi Index activity remains near its lowest level since early May 2012.

Freddie Mac reported 30-year fixed mortgage rates jumped 6 basis points to 3.40% in the week ending Jan. 10, its highest level since early November. With an average 0.7 point, the no point rate is at 3.58 %. The agency also reported a 2 basis points increase in 15-year fixed rates to 2.66%; +3 basis points for one-year ARMs to 2.60%, while 5/1 hybrids declined 4 basis points to 2.67 %.

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