Mortgage rates were little changed in the week ending October 20 according to Freddie Mac's weekly survey. 30-year fixed mortgage rates averaged 4.11% with an average 0.8 point, down one basis point from last week.
This keeps the no point rate in the 4.30% area and for many borrowers underlying 4% coupons with less incentive to refi.
15-year fixed rates were higher by one basis point to 3.38%; 5/1 hybrid ARMs were five basis points lower to 3.01%, while one-year ARM rates increased four basis points to 2.94%.
Current rate levels will likely keep mortgage application activity relatively muted. Yesterday, the MBA reported a 16.6% plunge in the Refi Index to ~3396 for the week ending October 14 as mortgage rates moved back above 4% from a record low 3.94%.
The near term outlook for speeds also is relatively tame as a result. Speeds are currently projected to increase around 5% to less than 10% on average for October in IFR Markets' sample. The largest percentage increases continue to be 5% coupons and lower. Factors influencing activity include a lower day count at 20 from 21, as well as, lower refinancing activity with the MBA's Refi Index down 4% on average for September versus August despite mortgage rates in Freddie Mac's survey averaging 4.08% compared to 4.26%. Looking further out to November and December, speeds are seen increasing less than 5%.
