Freddie Mac reported new record lows along 30- and 15-year fixed mortgage rates as well as 5/1 hybrid ARMs for the week ending July 19. Both 30- and 15-year rates declined three basis points to 3.53% (no -point rate at 3.71%) and 2.83%, respectively. Meanwhile, 5/1 hybrids fell five basis points to a 2.69% average which matches this week's one-year ARM rate.

The drop to 3.56% in the week ending July 13 boosted the Mortgage Bankers Association's Refinance Index by 22% to ~5330, which is just under the mid-June high since April 2009 of 5386. Current rate levels should keep the Refinance Index elevated in next week's release though it seems likely activity will slip lower. After hitting 5386 in the week ending June 15, refinancing activity declined steadily to 4369 through July 6 even as mortgage rates fell further to 3.62%.

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