Last week's sell-off moved fixed mortgage rates from their record lows set during the week ending June 7.
Freddie Mac reported 30- and 15-year fixed mortgage rates rose four basis points to 3.71% and 2.98%, respectively, for the week ending June 14. Meanwhile, adjustable rates were lower with 5/1 hybrid ARM down four basis points to 2.80%, while one-year ARMs averaged 2.78% from 2.79%.
The modest increase in mortgage rates may ease the Refi Index off its 19.2% surge to 5334 hit for the week ending June 8 (its highest level since 2009) as mortgage rates hit new historical lows.
Further suggesting a decline in the Refi Index is lower mortgage banker supply this week which has averaged below $2.0 billion per day compared to $3.0 billion last week. Still, refinancing activity is anticipated to remain elevated and Barclays MBS analysts believe the index will settle at 4500-5000 compared to 4000-4500 experienced late last year.