Mortgage rates continued their downward trend with the 30-year fixed mortgage rate declining 7bps to 4.87% with an average 0.7 point for the week ending October 8, according to Freddie Mac"s weekly survey. Rates are at their lowest level since mid-May and are just nine basis points above the record low of 4.78% hit in early April and again in early May.

With current mortgage rates holding below 5% and the no point rate at just over 5%, refinancing activity is likely to stay stimulated and move towards 4000. For the week ending October 2, the Mortgage Bankers Association (MBA) reported the Refi Index jumped 18% to about 3379.

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