Mortgage rates were little changed in the week ending June 30, according to Freddie Mac's weekly survey.
The 30-year fixed rates averaged 4.51%, up a basis point from the previous week, with an average 0.7 point, placing the no-point rate at just under 4.70%.
Refinancing activity is expected to be unresponsive despite the attractive rate levels given that many of the eligible borrowers in the 5% coupon have had plenty of time to take advantage of the improved rate levels.
Until rates can decline enough to bring in the 4.5% coupon, the Refinance Index is more likely to slide lower.
After hitting a recent peak of 2884 in the week ending June 10 as mortgages rates averaged 4.49%, the Mortgage Bankers Association's Refinance Index has declined 9.6% in the following two weeks even as mortgage rates barely budged.
MBS analysts said that rates need to drop closer to 4% for the index to jump to the 4000 to 5000 area seen late last summer and into the fall.
Freddie Mac's survey also reported that 15-year fixed mortgage rates were unchanged at 3.69%, while adjustable mortgage rates were lower.
One-year ARM rates slipped two basis points to 2.97%, while 5/1 hybrid ARM rates set a new record low of 3.22%, down three basis points from last week.