The European Union FTQ bid led to a decline in mortgage rates for the week ending Nov. 3.

In Freddie Mac's weekly survey, 30-year fixed mortgage rates averaged 4.0% with an average 0.7 point, down 10 basis points from last week.

This places the no point rate at under 4.20%, which might provide some borrowers underlying the 4.0% coupon with a modest incentive to refinance. The rate is notably just six basis points above the record low posted in early October.

This should provide a modest boost to refinance activity this week. For the week ending Oct. 28, the Mortgage Bankers Association's (MBA) Refinance Index was steady at 3539. This has potentially helped spur refinance activity as well the sharp declines in posted mortgage rates by several of the large lenders.

Deutsche Bank Securities analysts in an MBSTrader comment yesterday said that rates for the top 10 lenders fell to 4.07% from 4.28% for loans with approximately one point origination fees.

Freddie Mac also reported 15-year mortgage rates at a 3.31% average compared to 3.38% previously; 5/1 hybrid ARM rates dropped 12 basis points to 2.96% — a new record low, while one-year ARMs slipped two basis points to 2.88%.

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